Automotive giant Stellantis is in the midst of a rather complicated period. The farewell of Carlos Tavares has left a leadership vacuum and a company looking for a new path forward. Under John Elkann’s leadership, Stellantis trying to deal with every situation, which until now had not presented itself. Indeed, there is talk of large-scale restructuring, pressure from governments, and a rapidly changing future of the automotive industry.
Closed 2024, Stellantis seeking rebirth in 2025
After a very difficult 2024, the automotive group led by John Elkann is grappling with intense reorganization. Following the farewell of the previous CEO, Carlos Tavares, Elkann initiated a series of very important meetings with the governments of the countries in which Stellantis operates and with employee representatives. The main objective is to reassure all stakeholders about the efforts the group is putting in place to try to maintain employment levels and to invest in its brands with the most history, such as Fiat, Alfa Romeo, and Lancia in Italy, Peugeot and Citroën in France, and Opel in Germany. This is obviously as far as Europe is concerned.
As for America, on the other hand, despite the difficulties, Stellantis has shown that it also wants to preserve the legacy of its brands to the best of its ability and continue to invest in its operations, including in the United States. It is precisely in this market, which is very important to the company, that Stellantis has managed to avert a wave of layoffs at one of its plants.
U.S. reclaims historic brands
Stellantis new CEO is sure to take the reins of a company that is in a complex situation. The company’s economic value has rather dropped, and the U.S. government is demanding the sale of some of the most important brands, such as Jeep and Ram, creating a conflict between national interests and corporate strategies. In addition, relations with suppliers, dealers and workers are very strained because of decisions made by the previous CEO, Tavares. Having to manage 14 different brands at the same time, along with the need to adapt quickly to the future of the automotive industry, which as we know is characterized by electric and increasingly digital vehicles, makes everything very complicated, especially balancing the needs of all parties involved.
For John Elkann, the executive chairman of Stellantis, this year has been very challenging. Despite the issues that have arisen, he has shown a willingness to keep everyone involved in the company (shareholders, employees, etc.) united. In the meantime that a new CEO is being sought, Elkann is focusing on two main goals. We’re talking about wanting to ensure the stability of the company’s day-to-day operations around the world and maintain the investments already planned. These first actions are certainly crucial to reassure everyone that the company’s future is solid. Stellantis must now also be able to demonstrate that its decision to merge several automakers was correct, striking the right balance between the need to constantly innovate and the need to maintain the traditions that users want to continue to see. This is therefore a fairly delicate action that requires great care on the part of Stellantis, who will have to execute every single step with attention to detail.