Stellantis and Tavares are divorcing due to disagreements over Group strategies, two months after a profit warning that lost about 40% of its value this year. The company stated it will seek to find a successor in the first half of 2025. The Senior Independent Director, Henri de Castries, stated that in recent weeks different opinions emerged between major shareholders, the board of directors, and Tavares, resulting in the CEO’s resignation. An interim executive committee will now be established, chaired by Chairman John Elkann. The board accepted Carlos Tavares’ resignation as CEO well ahead of 2026, when his contract was set to end. For the future, here are the possible scenarios, based on rumors and speculation.
1: Jeep is not the same anymore
Tavares’ approach was put under scrutiny after the collapse of sales in North America led Jeep to no longer be the golden goose: according to speculation, there will be a strong focus on the American brand to reverse the company’s momentum. Cash consumption of up to $10 billion will be fought: sales to be increased and inventory to be reduced in its North American market. In fact, Jeff Laethem, owner of a Stellantis dealership in Detroit, said he was relieved by the news of Tavares’ resignation. 2024 has been punishing for him, as inventory grew and sales of once-reliable vehicles declined. “It couldn’t get worse,” Laethem said, adding that his nearby GM dealership hasn’t faced the same challenges.
The company’s vehicle sales in the third quarter of this year fell 17% in the United States compared to the same period last year, with significant losses in the Dodge, Ram, Jeep, and Chrysler brands. Difficulties in delivering even 2023 cars, as shown by data provided to Reuters by the car-buying app CoPilot: there are 112 days of supply in dealer lots for Ram 1500 and Jeep Wagoneer pickups, about 20 days more than their respective rivals Chevrolet Silverado and Ford Expedition. Jeep has always focused on the relationship between quality and price, reliability, and robustness. Tavares decided to position the brand higher, but he didn’t succeed.
2: Long-term projects
According to corridor rumors, Tavares was moving too quickly focusing on short-term solutions: now, yes to long-term, broad-scope projects. Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Stellantis shares, stated that “new ideas and fresh forces are needed to plan the company’s future.”
3: Yes to electric, but with caution
Carlos Tavares was pushing hard for electric mobility, particularly for Europe. With the Portuguese executive’s departure, there will now be a search for greater flexibility. Yes to hybrids to boost factory production. Also because cars like the Opel Corsa with 51 kWh gross battery, at 35,000 euros, are not ideal. The same goes for Fiat 500e.
4: Stop excessive sharing
No to too many synergies and operational efficiencies. The doubt, according to anonymous sources, is that Maserati and Alfa Romeo were penalized by excessive sharing of platforms and components with other brands. Brands too different in history, tradition, positioning, and clientele, mixed on a single base. Something that consumers didn’t like. Something wasn’t right with Giulia and Stelvio that will only have the range extender, or Lancia and Fiat that are nothing but copies of Citroën cars.
5: Improving relationships with everyone
Carlos Tavares was in battle against the Italian government, as well as American unions. A deterioration of relations reached historical lows. Perhaps too much controversy, even with those who dared in the media to analyze the Group’s poor performance.
6: Stop the profitability obsession
Stellantis bet heavily on profitability, making enemies of governments, suppliers, and dealerships. But the new models for the 14 brands haven’t satisfied. With lots of cuts, especially in plants. Many immediate profits, but just as many troubles in the years to come.
7: Consolidation with Renault
The seventh hypothesis, the most talked about, is the most explosive. A single mega Group made up of Renault and Stellantis. Luca de Meo would be in charge of everything. It would be France’s triumph, which has stakes in both companies. However, a way to survive against the Chinese wave must be studied. This way, we could witness a battle between increasingly immense Titans. In the past it seemed impossible, but now the idea doesn’t seem so unfeasible.