Swift Moves to Rebuild and Realign

Following the abrupt resignation of Carlos Tavares, Stellantis, led by Chairman John Elkann, is taking rapid steps to dismantle the legacy of its former CEO and repair relationships with dealers, industry partners, governments, and workers. The company, owner of 14 brands including Fiat, Jeep, and Ram, is being managed by an interim executive committee chaired by Elkann as it searches for a new CEO.

Addressing Key Challenges

With profit warnings and bloated inventory, Stellantis cannot afford to drift under temporary leadership. Elkann, the scion of the Agnelli family that founded Fiat, is focusing on a new approach that will be tested in meetings with Italian industry minister Adolfo Urso and local unions to agree on a long-term plan for production in Italy.

Rejoining and Realigning with Industry Groups

Stellantis has rejoined the European auto lobby group ACEA, aligning itself with the group's proposals. This move marks a shift from the independent lobbying strategy adopted by Tavares. The company also plans to improve relations with dealers in the U.S., a crucial market for its profitability.

Promising Early Actions

Elkann's early actions have been promising, with a focus on decentralizing the company and giving more autonomy to its country structures. Stellantis shares have rebounded since Tavares' resignation, reflecting a positive market response to the changes under Elkann's leadership.