From financial difficulties to disagreements with unions to Rhodes’ ambitions. Poor financial performance, tensions with unions and calls for divestment of historic brands are putting pressure on CEO Carlos Tavares. Now in search of new plans to get out of the impasse and some major top management changes
Stellantis in crisis and Tavares under pressure
Automotive giant Stellantis is currently in a very difficult time in certain respects. In fact, the group’s performance has not at all met and fulfilled the expectations that so many had responded in it. One of the main problems is precisely that of the stock market listings, for which there are currently several diatribes going on between investors and the company. In addition, as we have discussed before, Tavares is grappling with the U.S. unions (UAW) over problems found in some plants that would cause thousands of employees to lose their jobs.
To top it off, Chrysler’s great-grandson, Rhodes, is trying to put pressure on the auto group to divest some struggling brands, such as Chrysler, Dodge, and Plymouth. These would be the reasons why the latest rumors are becoming more and more concrete about a possible reorganization at the top of the company, with Tavares obviously in the crosshairs.
Tavares then, known for his very bold and strong strategic moves, may have come to a fairly important crossroads in his career. After the series of issues we have mentioned, especially after the drop in Stellantis’ stock price, the CEO may also be at the point of considering a major reorganization at the top of the company.
Tavares evaluates scaling back and layoffs at the top: Jackson and Koskas in the crosshairs
Several sources, are saying in an attempt to relieve himself of the burden of this situation, Tavares may decide to carry out layoffs of some of the top executives. The names that have been mentioned in this issue are those of Lina Jackson and Thierry Koskas. The former, Linda Jackson, represents a major figure in the automotive industry, and currently serves as CEO of Peugeot within the Stellantis Group. Koskas, on the other hand, has been appointed CEO of the Citroën brand and Sales and Marketing Director of Stellantis effective March 1, 2023.
The choice of Tavares would be dictated by the increasingly strong need to try to turn things around as best he can for the Stellantis group. In addition to all the ongoing problems for the company, there are also other issues that cannot be left behind. We are talking, for example, about the transition to electric mobility, the increasingly difficult management of a very large brand portfolio with related very fierce competition from new players that are increasingly at the forefront of the relevant market. Then, as is already well known, the recent difficulties currently being experienced in the U.S. market and the problems of corporate cost control contribute to greatly exacerbate the overall situation.
Rebirth or decline?
Now, there are many who wonder what the consequences of this possible revolution at the top of the Stellantis Group might be. Those involved in analyzing the complex situation seem to have conflicting opinions. There are those who think that Tavares has all the professional characteristics to be able to resolve the situation with his skills as a great leader, thanks to his enormous experience and strong determination. On the contrary, there are also those who think that a corporate revolution such as the one currently being talked about could generate great destabilization, undermining the company and its ability to react positively and quickly to changes in the industry.
Stellantis’ future at this time is not completely certain; there are many aspects that are urgently awaiting a final solution that satisfies everyone. Decisions to be made in the coming months will be crucial both for the company but also for much of the automotive industry, especially the U.S. market. All eyes therefore remain on Tavares and his next moves, which we await shortly.
“I want to save Chrysler and Dodge” – Rhodes defends family legacy
On the Rhodes matter, we know that in a recent hour-long talk held with RacerX, he spoke in full detail about his vision regarding brands such as Chrysler and Dodge. He spoke at length about his commitment to trying to best preserve these famous American brands, a family tradition that began with Rhodes’ Great-Grandfather nearly 100 years ago. The livestream, therefore, gave the audience a very deep insight into Rhodes’s passion and love for the American auto industry, particularly the brands we mentioned.
Recall also, that Stellantis has refused to divest itself of any of the brands it owns, resulting in criticism from Rhodes. The latter was reportedly disappointed by Tavares’s behavior, that instead of relating to the person directly concerned with the request to take control of the brands, he had the response of rejection delivered via the social network.