According to a renowned French business journalist, Carlos Tavares has made several strategic errors during his management of Stellantis, many of which were crucial. Christine Kerdellant, a prominent journalist and author, expert in analyzing business and management dynamics, has explored these criticalities in her latest article. Kerdellant, who serves as editor-in-chief of the French magazine “L’Express”, is known for her incisive opinions on prominent figures in the business world. In a recent article, Kerdellant examined the issues related to Tavares’ leadership at Stellantis, analyzing in particular the choices that led the company to strategic difficulties.
Here are the three most serious errors made by Carlos Tavares while leading Stellantis
Christine Kerdellant, in her analysis of Carlos Tavares’ management, highlights various strategic errors that have weakened the automotive group. The first major error by Tavares, according to the journalist, was the lack of focus on the U.S. market, which historically was the most profitable for the company. By the end of 2023, Stellantis found itself with excess inventory, while competitors were offering discounts to stimulate demand in a declining market.
Despite this, Tavares chose to maintain high margins, thus weakening the position of Stellantis and its dealers. Furthermore, the unstable management of the region, due to the departure of COO Mark Stewart and his rapid replacement, generated confusion and limited the company’s ability to adapt to continuously changing market conditions.
The second error by Carlos Tavares, according to Kerdellant, was his obsession with cost reduction. While his strategy initially led to good results, in the long term, the priority given to immediate savings harmed investments in innovation and marketing, resulting in a loss of customer interest in Stellantis vehicles.
Finally, another serious error was the failure to capitalize on the Chinese market. Carlos Tavares inherited a solid position in China thanks to the partnership with Dongfeng, but conflicts with Chinese partners and lack of investment in local operations significantly reduced Stellantis’ presence in that strategic market.