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Just weeks after stepping down as the head of European-American automotive conglomerate Stellantis, Carlos Tavares is standing by the decisions that forced the embattled former CEO into resignation.
According to Portuguese publication Expresso, Tavares defended his ambitious electrification plans for Stellantis' brands, which involved a €50bn ($82bn) investment to transition to 100 per cent battery-electric sales in Europe by 2030, despite them being at odds with members of the board.
“A company that has 250,000 employees and 15 brands cannot be managed with a lack of alignment,” said Tavares.
It was a move that was spurred on by Europe’s strict vehicle emissions standards, which Stavares said ultimately created a "dead end" for European automakers and played directly into China's hand.
Despite initial gains in the EV sector after the COVID-19 pandemic, when the company recorded a record €189.5 bn ($313.7bn) net revenue for 2023 off the back of strong financial incentives for EVs, things fell away quickly for Stellantis in 2024.
As incentives have dissipated buyers have increasingly opted for cheaper Chinese imports, or simply stopped purchasing electric vehicles altogether, putting many of Stellantis’ brands – such as Ram, Jeep, Chrysler, Fiat and Alfa Romeo – in limbo.
Net revenues were subsequently slashed by 27 per cent in the third quarter of 2024 compared to the same period in 2023, with sales for Dodge, Chrysler, Jeep and Ram all down for this year.
Thousands of manufacturing jobs have been cut or are in the firing line across Europe and the US, while Stellantis has halted production of electric cars such as the Fiat 500e.
Tavares admitted that Chinese EV-makers are “many years" ahead on the EV front largely thanks to aggressive subsidising by the Chinese government in the battery sector, along with China's huge manufacturing capacity.
“The European automotive industry was pushed towards what the Chinese know how to do best, and it turned out to be a mistake,” he said.
Where Stellantis goes from here is unclear, with the company set to announce a new CEO in the first half of 2025.
For now, though, it appears to be shoring up its interests in Chinese electric car and battery companies in Europe, with the company recently announcing a partnership with CATL to launch a battery manufacturing facility in Spain.
Stellantis also owns a 20 per cent stake in Chinese EV brand Leapmotor, which is currently building the small electric T03 hatchback at Stellantis’ plant in Tychy, Poland.
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