Former Stellantis (NYSE:STLA) CEO Carlos Tavares has been described as “arrogant”, making errors that led to the automaker’s troubles in the U.S. It’s also how executives who worked with him described the automotive veteran over the past year.
Several former or current leaders, as well as other U.S. employees with the trans-Atlantic automaker, said Tavares’ relentless focus on cost-cutting, his goal of achieving double-digit profit margins under his “Dare Forward 2030” business plan, and a reluctance, if not unwillingness, to listen to U.S. executives about the American market led to the company’s current situation and, ultimately, Tavares’ departure last week.
The sources, who agreed to speak on the condition of anonymity in order to talk freely and avoid repercussions, were interviewed at various times throughout 2024, including several last week.
They described the Portuguese-born executive as being fixated on near-term cost reductions and profits to the detriment of the business as well as to the company’s products, employees and relationships with suppliers, unions and dealers.
The problems included a lack of support for new products and sales, squeezing supplier costs, and mismanagement of plants and products in North America, the sources said.
STLA shares, meanwhile, grew 17 cents, or 1.2%, in Tuesday’s first hour to $13.90.
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