New Direction at Stellantis – A Fresh Start in Turbulent Times

Under the leadership of chairman John Elkann, the fog of the past is lifting at Stellantis, the multinational automaker with brands like Fiat, Jeep, and Ram. Following the unexpected resignation of former CEO Carlos Tavares, just 18 months before the end of his contract, the company is now moving swiftly to mend the rifts that had developed between the board and major shareholders of the world's fourth-largest automaker. Currently, an interim leadership committee is taking control of the company while the search for a new CEO is underway. Much is at stake: given high inventory levels and a profit warning in September, Stellantis cannot afford to stall during this transitional phase. Elkann, the youngest scion of the Fiat founding Agnelli family, also chairs Ferrari's supervisory board and heads the family holding Exor Agnelli. Next Tuesday, the new strategy faces an initial litmus test when representatives of Stellantis meet with the Italian Industry Minister Adolfo Urso and local unions to negotiate a long-term production strategy in Italy. In exchange for expanding production and protecting jobs, the company could negotiate improved manufacturing conditions and state support for the transition to electric mobility. This could significantly ease tensions with Rome. Less than a week after Tavares' resignation, Stellantis announced it would rejoin the European automaker lobby group ACEA. This decision reverses Tavares' withdrawal from the group in early 2023 in favor of an independent lobbying strategy. The return is coordinated with the associations of European Stellantis dealers, who supported the ACEA proposal to ease EU carbon reduction targets. Jean-Philippe Imparato, Stellantis’ head of Europe, recently emphasized that they want to align with ACEA’s proposals. At a meeting of European dealers in Amsterdam, the atmosphere was relaxed, and confidence was expressed in a strong partnership with Stellantis. Alberto Di Tanno, chairman of the Italian dealers' group Intergea, remains optimistic that tangible changes will soon be evident.