This past Sunday, Stellantis announced that its CEO had resigned after informing President of the Republic Sergio Mattarella and Premier Giorgia Meloni. The newly formed temporary Executive Committee will be headed by John Elkann, president of the Stellantis group. Potential candidates for the new CEO position have already emerged: the Frenchmen Olivier Francois and Jean-Philippe Imparato, both internal managers of the group, and the Italian Luca de Meo, CEO of Renault, are considered the leading contenders.
Tavares’s resignation comes amidst a particularly challenging crisis for Stellantis. Some brands are experiencing record-low sales: Abarth sold 23,500 automobiles in 2018, but only 7,900 in 2023, with negligible sales of EVs barely exceeding 100 units. Maserati, meanwhile, has closed its plant in Grugliasco, and its Modena facility has seen a 75% drop in production. Speculation suggests that the newly appointed CEO may consider selling these struggling brands. Additionally, Stellantis has seen a 41% drop in value on the Italian stock market this year, with a 17% decline in sales compared to October of last year.
These challenges add to an already complicated regional context, characterized by stringent EU regulations regarding safety and environmental impact, a general decline in European demand for cars—particularly electric vehicles—and fierce competition from Chinese manufacturers. This situation is reflected in the numbers: as of August this year, the European automotive industry has sold 18% fewer vehicles compared to the same period last year.
Various rumors surround the future of Tavares and the Stellantis group. What is clear, however, is that the newly appointed CEO will face a complex situation. If structural reforms to the group’s production processes are necessary, increased pressure on Italian and European political institutions will also be essential to support Europe’s manufacturing industry, as its decline could have severe consequences for the continent’s economy.
Author: Luis Cabezas