John Elkann is facing a challenging test as Stellantis’ CEO to get the company out of trouble. He needs to demonstrate firmness, lucidity, and generosity to manage the crisis effectively. Elkann can learn from Marchionne’s experience, who transformed Fiat into FCA after it was in a worse position than Stellantis today.
Marchionne understood that Italy is not suitable for large-scale industry due to its high electricity costs, making certain cars economically unsustainable. He aimed to overcome the ideological opposition between bosses and workers by creating a community where all participating entities benefit. However, his vision was rejected by politicians and unions, leading to Fiat’s departure from Confindustria and metalworkers’ contract.
Stellantis’ current challenges include the uncertainty of the ecological transition, with many inaccurate statements being made. Elkann announced a five-year plan to transition to electric or hybrid vehicles in 2018, but it remains unclear if it’s feasible until new batteries are found.
Elkann needs to develop a new business plan that addresses regulatory issues, such as fines on emissions starting next year. He must offer competitive conditions, including lower costs of services and quality of work, to attract investments. The government’s redundancy fund is also a contentious issue, with many questioning its effectiveness.
To resolve these challenges, Elkann needs to demonstrate a clear understanding of the situation and develop a comprehensive plan that addresses both short-term and long-term issues. He must also be prepared to make tough decisions and invest in innovation and investment to ensure Stellantis’ success.
Source: https://www.firstonline.info/en/stellantis-crisis-elkann-has-the-opportunity-to-put-into-practice-what-he-learned-by-working-alongside-marchionne-for-15-years