“Others have created chaos, and now you’re asking me to solve the situation and guarantee jobs. I’m not a magician, I’m a human being like you.” This is how Stellantis CEO Carlos Tavares responds to requests for reassurances regarding job retention during the Paris Motor Show 2024. Tavares didn’t hesitate to engage in controversy, emphasizing that the problems are mainly due to new European regulations. However, the issues are not limited to Europe, as Stellantis has confirmed layoffs at the Warren plant and announced new ones coming, without going into specifics.
Carlos Tavares says he can’t perform “magic” on upcoming layoffs
During Friday’s hearing, Carlos Tavares clarified his position: “I tried to explain that we shouldn’t confuse the causes with the symptoms of the current difficulty. The symptom is that the situation is chaotic, but the main cause is the regulations imposed by the EU.” While guaranteeing Stellantis’ maximum commitment to addressing the situation, the Stellantis CEO launched a critique, emphasizing that “the government can’t simply stand aside and wait for the situation to resolve itself, but must do its part.”
Carlos Tavares continues to reiterate that the main problem lies in the European Union’s regulation on the electrification of the automotive sector. In an interview published in Les Echos, Tavares emphasized that “closing borders to Chinese products is a trap,” as Chinese companies would still find ways to circumvent these barriers by investing in plants in Europe. Worsening the situation, Tavares added, is the fact that these plants would be partly financed by state subsidies, especially in low-cost EU countries, thus creating a further competitive disadvantage for European companies. He also added that if this happens, the group might be forced to close some plants.
Carlos Tavares expressed concerns not so much about competition with Chinese or other competitors, but about Europe’s attitude, stating that “it’s the others who are worried. At Stellantis, we are ready.” The real problem, according to Tavares, is that “Europe fears competition, it’s afraid to enter the race.” The CEO reiterated the need for state incentives to stimulate demand, specifying that Stellantis is not asking for funds for itself, but for consumers and citizens.