Carlos Tavares, the former CEO of Stellantis, has left behind a trail of controversy and internal power struggles within the European automotive conglomerate. A new report from CNBC reveals that Tavares’ swift cost-cutting practices, micromanaging, and emphasis on electric vehicles led to widespread discontent among US team members.
Tavares pushed for the elimination of the iconic Hemi V-8 engine, citing a need to be “greener.” However, many at Stellantis opposed this move, feeling that it would harm their products. The company ultimately decided to discontinue production of the eight-cylinder engine.
The report also alleges that Tavares was dismissive of ideas that didn’t align with his vision for doubling net revenues and improving margins through electric vehicles. He reportedly required US team members to attend meetings in the middle of the night, creating a sense of division between European and American colleagues.
Tavares’ departure comes as Stellantis faces significant financial challenges. The company is down 43% in 2024, outperforming only General Motors, which is up 55%. The internal power struggles and mismanagement under Tavares are believed to have contributed to this decline.
The situation has left many at Stellantis feeling undervalued and unappreciated. Five North American executives tendered their resignations during Tavares’ tenure, with some dealerships experiencing significant losses due to the company’s bloated new vehicle inventories.
Despite the challenges, Dodge and Ram CEO Tim Kuniskis is optimistic about the future of Stellantis. In a recent interview, he stated that the company will “get our ass kicked” but ultimately improve. Kuniskis’ return to work just days after Tavares’ departure suggests that the divide between top executives was significant.
Tavares’ legacy at Stellantis is now under scrutiny as the company looks to move forward. His departure raises questions about the future of the company and its ability to adapt to changing market conditions.
Source: https://www.roadandtrack.com/news/a63158362/stellantis-ceo-tavares-hemi-v8