Merger Time! Carlos Tavares proclaims: Stellantis "is ready for any kind of consolidation.”

[AlexB]

Either the end of the Either the END of Mopar-GM rivalry, or the END of the Peugeot-Renault rivaly.

"Stellantis NV’s Carlos Tavares is gearing up for an era of auto-industry consolidation, predicting the rush to offer more affordable electric vehicles will end in a “bloodbath.”
The 65-year-old chief executive isn’t taking formal steps to pursue Renault, which is virtually off-limits due to the French state’s ownership and influence over the two manufacturers. What he has done is upstage his archrival at every turn, and ready his company to capitalize on any setbacks.

Renault hit just the sort of stumbling block Tavares has been waiting for this week, calling off a multiyear pursuit of an initial public offering for its EV business. In an exclusive interview, the Stellantis CEO questioned Renault’s strategy and whether it will have the scale to compete with his company and EV leaders Tesla Inc. and BYD Co.

“It’s my job to keep my eyes open. It’s my job to understand how the industry is going to survive this transition. It’s my job to make sure that my company will be one of the winners,” Tavares said Wednesday. “And if we are one of the winners, of course there will be opportunities.”

When announcing the cancellation of an IPO for Ampere, its EV and software business, Renault reiterated that it’s able to self-fund its future. The company also said stronger cash generation factored in its decision to call off the listing process.

The intense interest in Renault is personal for Tavares. He spent most of the first three decades of his career at the company, only to leave in dramatic fashion after openly angling for then-CEO Carlos Ghosn’s job. He was quickly hired to run Peugeot maker PSA Group, executed a turnaround and orchestrated its 2021 merger with Fiat Chrysler, forming Europe’s second-largest automaker.

Whereas Tavares has been bulking up on brands — starting with Peugeot and Citroën, acquiring Opel and Vauxhall, and then merging with the owner of Jeep, Fiat and Alfa Romeo — Renault has pulled back from its decades-long alliance with Nissan Motor Co.

The companies decided last year to dissolve a joint-purchasing organization that had been viewed as one of the more successful elements of their otherwise fraught relationship. In December, Renault started to sell off its stake in Nissan.

During the interview Wednesday, Tavares said Renault is moving closer to Chinese partners, alluding to its joint-venture agreement with China’s Zhejiang Geely Holding Group Co. to set up Horse. China’s Envision Group also is one of Renault’s main EV battery suppliers.

“We’ll see how this is going to unfold, including in the eyes of the French government,” Tavares said. “I have no specific interest in this company more than any other; I’m just observing that they have a different strategy.”
While Tavares’s dour view of Renault’s ability to pull off an IPO of Ampere proved prescient, acting on that omniscience is another matter.

The two companies combined employ around 80,000 full-time workers in France, and the state has used its shareholding in the companies and presence on their boards to protect jobs.

Government intervention also has been at the root of Renault’s star-crossed recent history of failed deals. Persistent efforts by Ghosn, 69, to combine Renault and Nissan while trying to balance state interests culminated in his takedown in late 2018. The next year, Fiat Chrysler briefly pursued a merger with Renault, then blamed political interference when it withdrew.

Another complicating factor: De Meo has had discussions with Volkswagen AG, Europe’s biggest carmaker, and others about jointly developing more affordable EVs.

“A partnership between Renault and Volkswagen may be the starting point of something that would put Renault under the dependence of Volkswagen,” Tavares said in the interview.

Stellantis CEO Says Rush to Affordable EVs Will End in Disaster

(Bloomberg) -- Stellantis NV’s Carlos Tavares is gearing up for an era of auto-industry consolidation, predicting the rush to offer more affordable electric vehicles will end in a “bloodbath.” He’s paid particularly close attention to one company he perceives as vulnerable: Renault SA.Most Read...

finance.yahoo.com

Either Renault or General Motors :Death of ICE in U.S. by 2031... Coming November 2020...prescription: a Stellantis-GM Merger
(^^^This piece gets truer by age).
Remember Stellantis has that gigantic $50 billion+ cash pile that John & Carlos they have to figure out what to do with.
Either one would come with the sell of the Renault LCV business or the GMC brand due to regulators.

 

[Bili]

Yea yeah

Luca de Meo in the picture.

Stellantis is getting worse in Europe by each year, market share. Around 21 or 22% some five years ago, 16% today.

VAG is being rock solid over those 5 years.

 

[AlexB]

Yea yeah

Luca de Meo in the picture.

Stellantis is getting worse in Europe by each year, market share. Around 21 or 22% some five years ago, 16% today.

VAG is being rock solid over those 5 years.

Now to be fair, Stellantis has made VW jealous in profits:https://europe.autonews.com/automakers/vw-group-pressured-match-high-margins-stellantis.
Also Stellantis has claim on their conference calls they faced distribution problems in Europe.
But that aside, it does go back to Carlos realize that the merger benefits in Europe will be over come 2025 so he looking for another "Euro Rollup" unless it's GM(it would be the biggest Automotive Deal Ever):
(
Stellantis Looking To Sell Its North American Headquarters In Auburn Hills ).

 

[Freshforged]

A GM deal would effectively kill off Dodge and Chrysler brands—probably Ram as well. Not looking forward to that. If they need something to invest in, try more battery plants or buy up some lithium mines and processing plants.

 

[AlexB]

A GM deal would effectively kill off Dodge and Chrysler brands—probably Ram as well. Not looking forward to that. If they need something to invest in, try more battery plants or buy up some lithium mines and processing plants.

Outside of the Chrysler brand,the GM Merger wouldn't kill legacy FCA brands especially RAM because the "beauty" of the GM merger cost savings is having RAM+Wrangler+other STLA Body-on-frame products on the same underpinnings as the Silverado+GM Full-Size SUV's.
Your point is correct regarding either the Chrysler brand or Buick North America brand. It would probably be cleaner to get remove Buick in North America with the sell of the GMC brand.

 

[ChargerFan1]

Tavares has done such a poor job of course this would be his solution so quickly. The board is going to fire this clown in 3-2-1..... RIP stock holders too

 

[Moparound]

Am I understanding that the Charger/Daytona is the Challenger replacement and the Challenger is discontinued? Certainly there will be a Challenger at some point?

 

[cygnus]

Am I understanding that the Charger/Daytona is the Challenger replacement and the Challenger is discontinued? Certainly there will be a Challenger at some point?

There will be two vehicles - one four door, one two door. Both will be called Charger. People will know them by 'a two door Charger' and 'a four door Charger'.

There will also be a 300-like replacement - Stellantis Media - Media Advisory: Chrysler Will Unveil Innovative Electric Concept Car, Three Teaser Images to Preview Brand's Drive to All-electric Future

 

[Freshforged]

If a challenger coup is to appear, it will likely be on a midsized platform rather than large.

 

[patfromigh]

If they merge with Renault, then they get Mitsubishi. When that happens we can see a repeat of the 1978 - 1983 Dodge Challenger.

I would buy up Renault, then fix the Nissan and Mitsubishi business units, and send Renault to the dumpster. The French would never accept that deal.

 

[Deckard Cain]

The Renault CEO has called for european manufacturers to merge and create an "Airbus" of the automotive sector to compete with the chinese.
That idea is beyond catastrophic and it just shows how desperate Renault is about the chinese manufacturers. Strangely, their newest affordable EV, the Renault 5, doesn't offer LFP battery chemistry (which is much more affordable).
I think they are going to have issues competing with low-cost EVs from China because of that.
Also the new MG 3 just blows the competition in hybrids out of the water. The volume kings for Renault (the Clio and Dacia Sandero) are going to face tough competition as the vehicle is better in specs than the 48V Clio and will be cheaper slotting just above the Dacia Sandero.

Stellantis has LFP battery supply coming. The e-C3 will have LFP batteries, as well as the new Fiat Panda. So despite everything, Stellantis is in better position to face the chinese competition. The french might push for a merger of Renault with Stellantis. Ironic, considering how they blocked the Renault merger with FCA.

 

[ChargerFan1]

Mergers = death. They have proven nothing but a short term fat bank account, then a bunch of the management losers golden parachute and the rest fails horribly. Never see any "merger" as a good thing. Its just a robbery (Bob Eaton...anyone???). If Tavares is ALREADY calling for this it is a terrible sign, but he is also a terrible CEO, hence me saying AGAIN, get rid of this done-nothing-clown. He wants to golden parachute, do not let it happen.

It was Tavares wanting $70,000 for a Wrangler that caused this issue. Anyone can come sell a cool 4x4 product for $35,000

 

[AlexB]

Mergers = death. They have proven nothing but a short term fat bank account, then a bunch of the management losers golden parachute and the rest fails horribly. Never see any "merger" as a good thing. Its just a robbery (Bob Eaton...anyone???). If Tavares is ALREADY calling for this it is a terrible sign, but he is also a terrible CEO, hence me saying AGAIN, get rid of this done-nothing-clown. He wants to golden parachute, do not let it happen.

It was Tavares wanting $70,000 for a Wrangler that caused this issue. Anyone can come sell a cool 4x4 product for $35,000

Since 2009... the merger track record is excellent... Mopar doesn't exist without partnership-merger into FIAT.

 

[cygnus]

Since 2009... the merger track record is excellent... Mopar doesn't exist without partnership-merger into FIAT.

Bull$hit. Jeep and Ram could pay their own way. It never got seriously into liquidation level prices. Yes, I know the books that came out after what happened, I know the quotes from the people at the time - Jefferson Assembly and Toledo were viable. Only those plants.

 

[cygnus]

Mergers = death. They have proven nothing but a short term fat bank account, then a bunch of the management losers golden parachute and the rest fails horribly. Never see any "merger" as a good thing. Its just a robbery (Bob Eaton...anyone???). If Tavares is ALREADY calling for this it is a terrible sign, but he is also a terrible CEO, hence me saying AGAIN, get rid of this done-nothing-clown. He wants to golden parachute, do not let it happen.

It was Tavares wanting $70,000 for a Wrangler that caused this issue. Anyone can come sell a cool 4x4 product for $35,000

He really is awful.

Even @redriderbob has correctly called it, just like I have for two years now - Daimler 2.0

 

[AlexB]

Bull$hit. Jeep and Ram could pay their own way. It never got seriously into liquidation level prices. Yes, I know the books that came out after what happened, I know the quotes from the people at the time - Jefferson Assembly and Toledo were viable. Only those plants.

The 44Th President obviously disagreed, and thought GM was real Automaker between the two.

 

[ChargerFan1]

The 44Th President obviously disagreed, and thought GM was real Automaker between the two.

The guy that required them to build the dart that flopped? That guy?

 

[scatpack_69]

The guy that required them to build the dart that flopped? That guy?

But, it didn’t HAVE to flop. Dart is a good car, and always was. So was 200. When your CEO is on public record badmouthing his own product…..

And, had they evolved Dart/200, guess what? CAFE up, better for V8. But no………

For the good Sergio did, boy he sure pulled some stupid crap.

 

[scatpack_69]

The 44Th President obviously disagreed, and thought GM was real Automaker between the two.

…who wasn’t an economist. He was a lawyer

 

[AlexB]

…who wasn’t an economist. He was a lawyer

So was Sergio's background.
It was Chrysler and GM that came to D.C for a bailout.
44Th felt GM management was worse than Wall Street executives, and Chrysler couldn't manage its own affairs.
People around 44Th was saying(Austan Goolsbee):

Saving Chrysler, he added, could further harm General Motors, which stood to gain market share.”