“We quickly went from hero to zero. » This is one of Carlos Tavares’ favorite phrases, to avoid any triumphalism. Despite this caution, the CEO of Stellantis allowed himself to be intoxicated by results that were as exceptional as they were temporary. In 2023, the general manufacturer, born from the merger between PSA and Fiat Chrysler, has reached the same margins as Mercedes or BMW. Never seen before. In March, the share price reached its maximum, 27.34 euros, celebrating the engineer’s ten years at the head of the group. Three months later, despite worrying signs in the United States, it continued to promise profitability on its sales. “two digits”.
Tired! On Sunday, September 29, the board of directors met urgently and, in a “ funeral atmosphere », According to one of the administrators, Carlos Tavares significantly revised the results downwards. From 14% in 2023, the operating margin returns to between 5.5% and 7% in 2024, that is, zero profitability in the second half. The stock fell to 13 euros. The Tavares method – drastic reduction of costs and the break-even point, while selling its cars at increasingly higher prices – collides with the reality of the market. Buyers no longer follow them, especially in the United States, where the group made half of its profits. Even before this announcement, the board of directors launched the selection process for Tavares’ successor, whose term will end in January 2026.
In recent months, the group has suffered a series of bad news. First there was the Takata airbag crisis: after several fatal accidents, for the first time a car recall campaign was accompanied by a stop drivingrecommendation not to continue driving the vehicle. It took several months for the manufacturer to get into battle shape. Could you have anticipated the problem better without this obsession with always reducing costs? This is what Citroën C3 and C4 drivers who have filed a complaint against Stellantis want to know, adding to the ire of owners of Peugeots equipped with defective PureTech engines.
The American crisis quickly took hold: in June, Carlos Tavares recognized the failure of the group’s marketing strategy, which kept prices high when its competitors lowered theirs. The market share of American brands (Chrysler, Jeep, Ram and Dodge) has decreased significantly. In a letter addressed to Carlos Tavares, cited by the New York TimesKevin Farris, the president of Stellantis distributors, very angry, denounces a “ Reckless, short-term decision-making process to ensure record profits in 2023 »with “ Devastating consequences, but absolutely predictable.”. They are still waiting for a replacement for Jeep’s best-selling Cherokee and only have to offer their customers more expensive models. The waltz of the group’s leaders in the United States leaves them without an interlocutor.
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