Stellantis swiftly reshapes strategy under Elkann after Tavares exit


By Giulio Piovaccari and Nora Eckert

MILAN/DETROIT (Reuters) – Steered by Chairman John Elkann, Stellantis, owner of 14 brands including Fiat, Jeep and Ram, is acting swiftly to dismantle the legacy of its former CEO and repair relations with dealers, industry partners, governments and workers.

Carlos Tavares abruptly resigned on Dec. 1, almost 18 months before the expiry of his contract, as a rift widened between the board and main shareholders of the world’s fourth-largest carmaker.

While it seeks a new CEO, Stellantis is being run by an interim executive committee, chaired by Elkann.

Having warned on profits at the end of September and facing a bloated inventory, Stellantis cannot afford to drift under its temporary leadership.

Elkann, 48, is the scion of the Agnelli family that founded Italian carmaker Fiat more than a century ago. He also chairs Ferrari and runs the Exor Agnelli family holding.

The new approach will be tested on Tuesday, when the automaker’s representatives meet Italian Industry Minister Adolfo Urso and local unions to try to agree a long-term plan for production in Italy.

The company – the country’s sole major automaker – may pledge to expand output and protect jobs in return for improved manufacturing conditions and government support for the industry’s electric transition, easing tensions with Rome.

A Stellantis source, speaking on condition of anonymity, said it was the right time to sign a deal.

REJOINING LOBBY GROUP

Less than a week after the CEO quit, Stellantis said it would rejoin European auto lobby group ACEA. It left at the beginning of 2023 based on a decision by Tavares, who opted for an independent lobbying strategy without consulting the board, according to a second source.

The carmaker plans to align itself with the group’s proposals, Stellantis’ Europe Chief Jean-Philippe Imparato said last week.

Tavares had opposed a call by ACEA for relief on intermediate targets on the European Union’s carbon reduction targets under which carmakers risk multi-billion euro fines.

His position was not backed by associations of Stellantis European dealers, who supported the ACEA proposal.

But in a meeting of Stellantis European retailers, held in Amsterdam days after Tavares’ resignation, Imparato was the main guest and the mood was relaxed.

“The cooperation with Stellantis … is strong, and we are confident that we can face future challenges with our partner,” the dealers said in a statement.

Alberto Di Tanno, the chairman of Italian dealership group Intergea said it was too soon to see concrete changes but that he was confident.



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