Stellantis is facing a number of factors, both internal and external to the company, that are putting Carlos Tavares’ talents in great difficulty. In recent weeks, in fact, there has been a lot of talk about issues such as the transition to electric, delays in the development of new models, and poor financial results are just some of the factors that are dominating the crisis.
Stellantis, problems without solutions
Stellantis’ situation is far from serene at the moment. Carlos Tavares is in clear trouble, as is the entire automotive sector as a whole. The transformation to electric, soaring raw material costs, and much lower demand add to the already heavy problems we have already mentioned. The Stellantis Group, as well as most of the world’s car manufacturers, is by no means immune from these problems.
To the difficulties already listed, there are in particular some problems that plague the company internally. Delays in the development of new models, poor inventory management, and high tensions with the unions are factors that generate much disquiet within the company. In particular, the UAW affair is one that is putting the most strain on the group’s solidity.
Consequently, also increasing is the pressure on investors. The negative financial results we have already analyzed on several occasions, as well as the not at all reassuring outlook, have significantly lowered the confidence of Stellantis shareholders. Indeed, it is precisely the investors who are adding to the strong protests that are characterizing the weeks of the automotive group, who are clamoring for a change of course. In this complicated context, the loser seems to be Carlos Tavares, despite his many years of great leadership, especially through his contribution with the merger between FCA and PSA. The CEO currently finds himself in strong discussion and the protagonist of criticism in several aspects.
What will be the future of Carlos Tavares?
Carlos Tavares, to reporters Thursday at a press conference in Sochaux, France, replied that leaving when his contract expires in early 2026 could be “an option.” Plus, he added, “I signed a contract”-when asked if he could resign before then.
However, currently speculation about Carlos Tavares’ future is diverse. Some think there could be an early spontaneous resignation, but at the same time there could also be a contract renewal to give another chance. The appointment of a new CEO is also not ruled out, as well as a major corporate reorganization. Nothing is final at the moment, but certainly the decisions that Stellantis will make in the coming weeks and months will be crucial, both for the CEO’s future and that of the company. Moreover, if we consider the great value of the Stellantis automotive group, we will have spillover effects on the global automotive industry.
Therefore, there is nothing the company can do at the moment but to move forward, trying to speed up the development of new electric and low-emission models, in order to respond properly to consumer needs, but also to new stringent regulations. The various plants’ production will have to be reorganized efficiently, costs will have to be reduced so as to improve the collective situation. Building on these assumptions, we may also be able to regain the confidence of investors and consumers at the same time, demonstrating the great value of Stellantis all these years.