Carlos Tavares Breaks Silence on Stellantis Departure

Carlos Tavares, the former CEO of Stellantis, has spoken publicly for the first time since his unexpected resignation on December 1, shedding light on the reasoning behind his departure. In an interview with Portuguese newspaper Expresso, Tavares emphasized that his exit was the result of mutual agreement with Stellantis Chairman John Elkann, stemming from differences in strategic direction.

Tavares, who had led Stellantis since its creation from the merger of Fiat Chrysler Automobiles and PSA Group, described the move as “amicable” and necessary to safeguard the company’s alignment. “A company of this scale cannot function without alignment at the strategic level,” he stated, citing Stellantis’ workforce of 250,000 employees, its $200 billion USD in annual revenue, and its diverse portfolio of 15 brands (the 15th brand being its joint venture with Chinese startup Leapmotor).

While he refrained from detailing the exact points of contention with the board, insiders have suggested that disagreements over ambitious targets set by Tavares played a key role. Some board members reportedly viewed these goals as either unattainable or harmful to the company’s long-term stability.

Tavares highlighted his focus on ensuring the company’s continued success despite the strategic divide. “The main concern was to protect Stellantis from any risks that a misalignment could bring,” he explained.

Stellantis has faced challenges in recent months, including slumping North American sales and a profit warning issued in September, which some attributed to pricing strategies under Tavares’ leadership. Critics, including dealers and industry experts, argued that Stellantis had priced itself out of key markets in both the United States and Europe.

Describing the current state of the automotive sector as entering a “Darwinian period,” Tavares acknowledged the pressures facing automakers in a rapidly changing environment. “When you’re in a storm, you have to steer the boat according to the waves,” he said, suggesting that adaptability is critical in navigating the industry’s challenges.

Despite the abrupt end to his tenure, Tavares expressed no regret about his decisions as CEO. “I would act the same way if I could go back in time,” he affirmed, maintaining that his actions were always guided by a desire to protect Stellantis.

Tavares’ departure marks the end of an era for the company, as it seeks to recalibrate under new leadership amid a rapidly evolving automotive landscape.

Source: Expresso