Stellantis chief executive Carlos Tavares quits
First Nissan, now this. Another global automotive giant has suffered a loss that could signal the beginning of the end.
A leading global carmaker has sent shockwaves around the world after its boss quit amid falling profits and tanking share prices.
Stellantis - who owns household names like Alfa Romeo, Chrysler, Citroën, Dodge, Jeep, Maserati, Peugeot, Vauxhall and more - just lost chief executive Carlos Tavares a year before his planned retirement.
Tavares’ departure comes just days after news leaked that another global automotive power was also on the block, with Nissan insiders claiming the Japanese carmaker was 12 months away from collapse unless a new major investor could be found.
Tevares will leave Stellantis following the closure of Vauxhall’s Luton plant in the UK, and a dealer revolt that accused top management of the “rapid degradation of our iconic American brands”.
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The Portuguese executive is credited with the creation of Stellantis, which merged FCA (Fiat Chrysler Automobiles) with PSA (Peugeot Société Anonyme) to create an enormous collective including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall.
It also owns a large chunk of emerging Chinese brand LeapMotor.
Like many manufacturers, Stellantis is struggling to cope with the switch to electrification and increased competition from new brands.
Sales for all of its brands have dropped in Australia over the last decade.
Tavares pushed prices up in search of profitability.
Back in 2016, Jeep customers in Australia could snap up a Grand Cherokee for $45,000 drive-away including three years of free servicing.
Today, the cheapest Grand Cherokee is now $74,000 drive-away, a deal that only applies to model year 2023 vehicles a month away from being considered two years old.
Sales have tumbled as a result.
MORE: Citroen announces end of Australian sales
Stellantis brands such as Dodge and Citroen no longer sell cars in Australia, and Chrysler is set to follow suit with the end of production for its Chrysler 300 sedan.
Alfa Romeo moves of fraction of the metal claimed by BMW, ‘Benz or Audi, and EV enthusiasts have been slow to warm to the Fiat 500e electric car that costs roughly double the asking price of a traditional petrol model.
Reactions to Tavares’ departure have been mixed.
Former Nissan chief operating officer and Aston Martin chief executive Andy Palmer said “Carlos is perhaps the most professional car guy I’ve worked with”.
“He’s created some of the most iconic cars including the Renault Megane series.
“That Stellantis exists at all is down to Carlos. I hope history will be kind to him.”
A common refrain is that traditional carmakers such as Jeep – or Nissan – face immense challenges in a “tough time for many automakers right now” that has some observers believe traditional manufacturers “are all doomed”.
ANOTHER RESIGNATION: The legacy auto blood bath is just beginning 😬https://t.co/DUEduxJLXYpic.twitter.com/lE4geK2eKb
— Dan Burkland (@DBurkland) December 1, 2024
Stellantis’ senior independent director, Henri de Castries, said Tavares’ departure came about because of “different views” between the chief executive and board of directors.
Chairman John Elkann said “our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry”.
Meanwhile, Nissan is also fighting for survival after longtime partner Renault revealed plans to sell off its interests.
Insiders claim Nissan, one of Australia’s best-selling car brands, only has one year to survive as the company scrambles to backfill the gaping hole Renault’s departure will leave in its finances.
Two people with knowledge of the talks reportedly said Nissan was seeking a long-term, steady shareholder like a bank or insurance group to replace some of Renault’s equity holding.
“We have 12 or 14 months to survive,” a senior official close to Nissan said.
The bombshell departure of Renault comes as Nissan attempts to finalise the terms of its new electric vehicle partnership with arch rival Honda.
Reports indicate Nissan is considering “all options” for its future and has not ruled out having Honda buy some of its shares.
A series of restructuring measures have been launched at Nissan on the back of declining sales in both China and the US, insiders said.French carmaker Renault has also signalled its willingness to sell its Nissan shares on to Honda as it restructures a 25-year partnership that began in 1999 when Renault saved Nissan from bankruptcy.
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