Officially, he went himself. But several believe that Stellantis' director Carlos Tavares was fired. Now the Reuters news agency can reveal why.
The news agency Reuters can now reveal the reasons behind the decision to fire Carlos Tavares as managing director of Stellantis on the night of Monday Danish time.
Tavares, who had just over a year left on his contract, was removed from the post after a long period of internal disagreement within the company's management. The decision came as a surprise, as only a few weeks earlier he had been approved and promised support to continue in the post.
According to Reuters, the firing was due to disagreements between Tavares and the board, particularly in relation to the director's aggressive strategy to deal with Stellantis' financial challenges.
An anonymous source says that Tavares had proposed extensive savings in Europe, a move that several members of the board, including representatives of the Peugeot family, did not want to implement.
The families, who are among the biggest owners in Stellantis, have previously accepted the Portuguese director's management style. Mn falling profits and increasing pressure on the group made them less and less support.
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Tavares' handling of internal issues and communication was also mentioned as a factor. Tavares is said to have responded to criticism with remarks such as: "You don't interfere with my work – don't interfere with that.".
The remark must have fallen as recently as at the Paris Motor Show this year. That, together with the dissatisfaction with the strategy, was allegedly the last straw for several board members.
For the time being, Stellantis' chairman of the board, John Elkann, has stepped in as interim managing director.
Elkann, who also has a central role in the Fiat family's ownership, takes over management at a time when Stellantis is facing major challenges.
The car manufacturer has had difficulties with both profits and inventory sales in the US, while climate regulation in the EU is putting additional pressure on the group. Since the start of the year, the Stellantis share has fallen by 43 percent.
Carlos Tavares left the position with an annual salary of around 275 million Danish kroner. How much he has received for leaving a year early is not yet known.
