Stellantis, the fourth largest automotive group in the world, is going through a difficult timesomething similar to what happens with most traditional builders. But to this group that mixes the interests of French, Italian and North American investors, The crisis has already cost several company executives and even general director Carlos Tavares their jobs.the Portuguese coach who worked miracles with PSA and then managed to manage the marriage with FCA to start with Stellantis. The crisis and the need to electrify current vehicles exposed the difficulties of some of the 14 brands of the group, especially the Americans and, despite leaving in 2026, Tavares continues with the support of the Agnelli (FCA, largest shareholders of Stellantis) and Peugeot (PSA) families and promises to continue with the strategy that got him into troublethat is, closing or selling brands that are not profitable.
Playing at home at the Paris Motor Show, Tavares abandoned the 2021 commitment, in which the group guaranteed that the 14 brands had their future assured for 10 years. According to automotive news, The “profit or go” strategy was brought forward from 2031 to 2026. This means that, Almost simultaneously with the departure of the Portuguese at the head of Stellantis, all brands will have to become profitable.on both sides of the Atlantic.
HE president of Stellantis and grandson of Giovanni Agnelli, John Elkann, confirmed to AFP that the company he presides has no interest in mergers or acquisitions, stating that they are not prepared to consolidate, but we are not prepared to “deconsolidate” either, as is not the case. It is the ideal period. He also assured that “they are focused on the business” and that “all changes at the leadership level were determined by Tavares and with the support of the shareholders”.
Although the change in CEO practically coincides with the potential end of some of the group’s brands, Stellantis’ strategy seems to involve Tavares’ replacement being responsible for these difficult decisions. Closing brands and factories in Italy and France will always be problematic, but carrying out these operations in the United States will be even more delicate.
Source: Observadora
