Tavares warns Stellantis’ Europe, U.S., and Italy divisions risk pulling the company in separate directions.
Labour and political tensions followed cost-cutting, remote work, and production shifts under Tavares’ leadership.
Stellantis declined comment as new CEO Filosa focuses on U.S. investment and European production cuts.
Carlos Tavares, former CEO of Stellantis, has warned that the automaker could eventually be forced to split its operations between Europe and North America if it fails to manage mounting internal tensions. The remarks appear in a new book published Thursday in France, ten months after Tavares stepped down from the company.
We admit this ex-CEO’s premonitions remind us of another Carlos’ predictions where Nissan was going to more or less crash and burn in a matter of years following his departure…
In the book, Tavares said Stellantis’ stability is at risk due to the growing difficulty of maintaining balance between its French, Italian, and U.S. operations. “I am worried that the three-way balance between Italy, France and the U.S. will break,” Tavares wrote. He added that keeping the group united would require daily attention from management.
Stellantis was created in 2021 through the merger of Italy’s Fiat Chrysler and France’s PSA Group, forming one of the world’s largest automakers. The company oversees no fewer than 14 automotive brands, including Jeep, Dodge, Fiat, Citroën, Opel, Alfa Romeo and Maserati. Tavares pointed to stagnating car demand, rising competition from Chinese manufacturers, and geopolitical shifts as increasing pressure on the group’s structure.
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Tavares, 67, left Stellantis in December 2024 following steep market-share losses in both the U.S. and Europe, which contributed to a sharp decline in company profits. During his tenure, Stellantis moved engineering and production operations to lower-cost countries such as Morocco. The move drew opposition from labour unions and criticism from the Italian government.
Tavares also implemented workforce reductions and expanded remote work policies, which led to executive departures. Some of those who left reportedly joined Chinese automaker BYD, which has been expanding its presence in Europe. Tavares’ cost-cutting measures, he acknowledged, led to challenges in quality control, pricing, and product strategy.
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In the book, he disputed the narrative around his departure and suggested that Stellantis could one day be split between global regions. “One possible scenario… could be a Chinese manufacturer one day making a bid for the Europe business with the Americans taking back the North America operations,” he wrote. Tavares compared the idea to General Motors’ ongoing strategy to focus on core markets.
Tavares also expressed doubts that French interests would continue to be adequately defended following his exit. “With me gone, I am not sure that the French interests that I always had at heart… will be as well defended,” he wrote.
Stellantis’ current CEO, Antonio Filosa, was appointed in June after a prolonged executive search. He has since pledged to invest $13 billion in the U.S., the group’s most profitable market. At the same time, Stellantis has scaled back some European investments, raising concerns from unions in both France and Italy.
Source: Automotive News
