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Carlos Tavares: we deciphered his interview on Stellantis’ strategy

6 de May de 2021
in Car
Carlos Tavares: we deciphered his interview on Stellantis’ strategy
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The Portuguese boss of the Stellantis group, bringing together PSA and Fiat-Chrysler, spoke in the columns of the Point. A revealing interview …

The 14 brands

Context

The Stellantis group now has 14 brands, sometimes rivals and sometimes sick. Rumors of deletion have circulated since the announcement of the PSA-FCA merger …

=> Stellantis: brands on the spot?

What Carlos Tavares says …

“We’re going to give each of them a chance […] I have guaranteed their bosses that they will have their funding within the next ten years. But there is no static or endlessly protected situation ”.

Decryption

Yes, Alfa Romeo, DS, Lancia or Chrysler – the current weak links of Stellantis – will be entitled to new products in the years to come. But reorientation will have to take place. And in the long run, no brand is immortal. “Performance protects” is one of its credos. If you are not efficient …

=> Find the full interview on the lepoint.fr website

Employment

Context

The group now has 54 assembly plants and more than 300,000 employees worldwide.

What Carlos Tavares says …

“The future of employment in our industry depends directly on these lifestyle choices (between individual freedom of movement or emphasis on public transport, editor’s note) that will be made in our societies. If the second solution prevails, Stellantis will have to change its activity, adapt. Why not make medical equipment, for example? “.

Decryption

The boss of Stellantis does not commit to the future … and sends a message. Maintaining the automotive business as we know it (with its employees and factories) will be linked to policy support. In Italy or Serbia, assembly sites are operating well below their capacity. These factories could receive the first bad news from the team… except in the event of stronger public support.

CO2 emissions

Context

European regulations are lowering the CO2 ceilings allocated to manufacturers more and more quickly. And the fines are steep for those who fail to lower their average.

What Carlos Tavares says …

“Thanks to the electrical technology that PSA has brought to Stellantis, we will independently comply with carbon emission limits starting this year. Thus, we will not need to call on CO2 credits in Europe; and FCA will no longer have a pool with Tesla or with anyone else ”.

Decryption

The Fiat-Chrysler group was so late on electrification – due to underinvestment during the Marchionne era – that it was forced to buy “credits” from Elon Musk’s brand to avoid fines . The platforms and power chains designed by PSA will quickly find their place in the ranges of the former FCA group.

China

Context

Established in the mid-1980s in the People’s Republic, the PSA group held a good position until the mid-2010s. But the disagreement with the Dongfeng group, a failed product plan, distribution concerns and a Wuhan plant too large weighed down the brand’s efforts. As for the Fiat-Chrysler group, it has never managed to exist in this market with 25 million vehicles per year.

What Carlos Tavares says …

“We are well advanced on the diagnosis to understand what went wrong and we will present a new strategy by the end of the year, which will require very profound structural changes. It is indeed unthinkable that a company like ours would be so successful in North America, South America and Europe and not perform well in China ”.

Decryption

Stellantis will start over. The brand could focus its efforts on the rapidly developing electrical market and reposition its brands. With a comeback of Citroën (and its C5 X made in China) at the forefront?

To read on auto-moto.com:

What is the strategy of Luca de Meo, the new boss of Renault?

Peugeot e-1008, Alfa Romeo Tonale… The future models of the Stellantis group

Linda Jackson is Peugeot’s new boss

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