The automotive sector is in turmoilThe emergence of Chinese brands dominating electrification with an iron fist by offering autonomy and quality at a reasonable price has turned everything upside down. This has caused the loss of control of the companies that had not paid the necessary attention to this paradigm. Stellantis is one of the groups that has not done too badly but it seems that things are starting to turn negative according to their balance sheets…
Last year 2023 was a record year with profits that surprised the entire industry. The magic was thanks to the fact that Carlos Tavares, its CEO, He imposed strict financial control based on harsh cuts. And although it has worked, the situation is now different because although they still earn more money than another group, their profits have fallen by half. The result of all this is that John Elkann may be considering a replacement.
Stellantis could be looking for a replacement for Carlos Tavares…
When Stellantis was born from the merger of Fiat Chrysler Automobiles and Groupe PSA, there was much talk about who would take the lead in directing its 14 brands. At the time, it was said that the French "side" had won because Carlos Tavares had been appointed by the Peugeot family. However, it seems that the Italian "side" is in charge because It is John Elkann, grandson of Gianni Agnelli (founder of Fiat) who controls everything that happens...
In any case, the fall in Stellantis' profits would have caused Elkann to have to make a move. Today, as we have indicated, The Italian-French-American group continues to make money but its operations are not as agile as before. Not to mention that all of their brands are immersed in continuous changes so as not to make mistakes with the future models they are developing. In addition to the veiled threat of closing them if they do not make money.
Given everything that is happening at Stellantis, alarm bells would have gone off. The group could not submit to another strict budgetary control to further adjust its finances. Even more so because There are important firms that need or have seen their investments in new models reduced. and this is harming them. However, it seems that Tavares' "magic" seems to be coming to an end and perhaps the best thing to do is to look for a replacement...
It would be in 2026 and due to the crisis in the US...
Another of the problems that Stellantis has on the table is the "American" revolutionIn the United States and other countries on that continent, several operational managers have resigned because they have not been able to deal with the problems facing the group. Chrysler has no models and survives with a Pacifica that holds up well to its rivalsDodge is almost dead because the Hornet is not selling and the Charger and Challenger are on standby.
Then there is Jeep which, although it has a solid and successful range has seen how the replacements that have to arrive are not going at the pace they shouldFor example, the Cherokee has left the market and does not have a replacement in the short term. The Compass is living its last months of life and the Renegade is no longer sold because it will soon have a replacement. Then there is the RAM pickup division, which remains strong but needs to boost its sales with new models.
Finally, Carlos Tavares has another "small" problem. The US retail network is full of stock that dealers cannot sell. Nobody gives the Dodge Hornet (our Alfa Romeo Tonale) a chance, but Italy keeps sending them cars, which is causing them to become saturated. So with all these fronts open, it is normal that John Elkann and his advisors are thinking of finding a solution…
Be that as it may Carlos Tavares still has time to rectify. His contract is valid until 2026 so with everything left of the year and 2025 he could do more "magic" to solve these problems. And not only that, it could be the case that he does it so well that its renewal is finally given. This will surely upset Giorgia Meloni's people, with whom she has had harsh words over the request to manufacture more cars in Italy...
Time will tell what happens…
Source - Bloomberg
Images | Stellantis
More information about this model
- Plazas 5
- Power 110 - 224 hp
- Consumption 1,1 - 5,6l/100km
- Assessment 4