The CEO of the Stellantis group, Carlos Tavares, attributes some strategic mistakes made on the US market to his arrogance
June 18, 2024
Carlos Tavares blames his arrogance for some strategic errors that negatively affected Stellantis’ performance in the United States. In an interview granted to Fortune, the CEO of the group born from the merger between FCA and PSA commented on the contraction of market share in the United States, due to the reduction in sales. “When I say we were arrogant, I am referring to myself and no one else. I should have acted immediately, recognizing the convergence of the various problems. We had to set up a task force to resolve them,” Tavares explained.
In the first quarter of the year, Stellantis saw its sales in the United States fall by 14%. The situation was further complicated by the increase in unsold Jeep and Ram models and production problems at two unidentified local plants. Tavares, however, said he is confident that the company can resolve these issues. “It’s something we’ve done countless times, all over the world.” “If three things happen at the same time it’s more difficult, but it’s not an impossible situation to resolve.”
Despite these setbacks, Stellantis remains positive, also thanks to a rigorous cost containment regime which has seen a reduction in the workforce by around 50,000 employees. In the interview with FortunesTavares also expressed opinion against the duties of up to 38.1% imposed by the European Union on electric models produced in China. “We will strive to be as competitive as possible in terms of product performance, range, accessibility. We will compete because we are a global company.”
