Stellis boss Tavares fired: does the car maker threaten the crisis?

Stellis boss Tavares fired: does the car maker threaten the crisis?

A dramatic turn in the automotive industry: Carlos Tavares, the CEO of Stellantis, was immediately fired. The reasons for this decision are complex and mostly remain in the dark, as reports Today.at . The best paid car manager, who earned 36.5 million euros last year, is leaving a company whose sales figures have been significantly fallen. Especially in North America there was a connection with an alarming decline of 36 percent. European markets also contributed 17 percent to the worrying figures. John Elkann takes over the management of the company until a new boss is appointed.

causes of the termination

The problems of Stellantis are diverse. The pricing of the vehicles, especially with the volume models, apparently driven many customers into the arms of the cheaper competition. The popularity of brands such as Renault and Suzuki increases, while the models of Stellantis, including Fiat, Peugeot and Opel, fall back in the sales figures. According to insiders, Tavares' strategy was too strongly geared towards short -term solutions, which led to growing displeasure among managers.

In addition, Stellantis sees itself with great challenges. The transition to electromobility has to be mastered, and Tavares was optimistic, but also realistically over the hurdles: the production of electric vehicles is currently 40 percent more expensive than the production of petrol -powered cars, which requires additional state incentives. This emphasizes sueddeutsche.de , and questions the dynamic goals of the company that would like to change in the field of electromobility by 2030.

In the middle of these uncertainties, the question remains whether Stellantis can keep his course successful without the management of Tavares. Financial consistency could be the key to coping with this transformation, as Tavares himself emphasized: "Money is not the problem." It will be exciting to observe how the group will develop under new management.