{"id":132704,"date":"2024-12-03T04:11:53","date_gmt":"2024-12-02T21:11:53","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=132704"},"modified":"2024-12-03T04:11:53","modified_gmt":"2024-12-02T21:11:53","slug":"stellantis-shares-tumble-after-ceo-carlos-tavares-abrupt-resignation","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=132704","title":{"rendered":"Stellantis shares tumble after CEO Carlos Tavares&#8217; abrupt resignation"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Outgoing CEO Carlos Tavares clashed with\u00a0Stellantis\u2019 board over his plans to quickly turn around the <a href=\"https:\/\/nypost.com\/2024\/08\/09\/business\/stellantis-to-cut-nearly-2-5k-union-workers-as-ram-classic-truck-production-ends\/\">ailing US business<\/a> by cutting costs, rather than focusing on long-term strategy, investors and bankers familiar with the matter said on Monday.<\/p>\n<p>Shares in the Jeep, Fiat and Peugeot manufacturer slumped as much as 10%, hitting their lowest since July 2022, as investors worried about the vacuum left at the top of the world\u2019s No. 4 carmaker following Tavares\u2019 resignation on Sunday. The stock closed down 6.3% in Milan trading.<\/p>\n<p>Stellantis\u00a0is struggling to get rid of overcapacity and bloated inventory in its key North American market, at a time when global demand remains sluggish and competition from Chinese rivals, especially in electric vehicles, is intensifying.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Shares in the Jeep, Fiat and Peugeot manufacturer slumped as much as 10%, hitting their lowest since July 2022, as investors worried about the vacuum left at the top of the world\u2019s No. 4 carmaker following Carlos Tavares\u2019 resignation. <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>In addition to its US travails, the company\u2019s focus on raising prices among its mass-market marques has\u00a0driven\u00a0away inflation-hit customers in its other important market, Europe.<\/p>\n<p>Stellantis\u00a0had said shortly after a shock profit warning in September that Tavares would retire in early 2026, at the end of his current term. The process to select a new CEO was initially set to be completed by the final quarter of next year.<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>Interviews with half a dozen shareholders, bankers and analysts show how quickly since then disagreements deepened between Tavares \u2013 long one of the auto industry\u2019s most respected executives \u2013 and the board over how to resolve the crisis.<\/p>\n<p>A senior investment banker briefed on the matter said on Monday that the board had grown concerned about Tavares\u2019 strategy for turning things around.<\/p>\n<p>In recent months, and with just over a year left of his contract, the CEO had focused mainly on cutting costs, the banker said. The board worried that was leading to quality issues but also cramping the company\u2019s ability to develop and design new models.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Tavares with President Biden in 2022 at the Detroit Auto Show. <span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Customers and dealers were furious about Tavares\u2019 strategy, the banker said.<\/p>\n<p>Launches of some key models, like the new version of the popular Peugeot 3008 mid-sized SUV and the budget Citroen C3 city car, with its electric version e-C3, have faced delays.<\/p>\n<p>A source familiar with the matter told Reuters on Sunday that\u00a0tensions\u00a0grew because the board felt Tavares was focused on finding near-term solutions to save his reputation rather than working in the best interests of the company.<\/p>\n<p>Stellantis\u00a0declined to comment and Reuters could not reach Tavares on Monday.<\/p>\n<p>The board of\u00a0Stellantis\u00a0is considering its head of North American operations, Antonio Filosa, and procurement chief Maxime Picat as internal candidates for the CEO position, a source close to the matter said Monday.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The board of\u00a0Stellantis\u00a0is considering its head of North American operations, Antonio Filosa (above), and procurement chief Maxime Picat as internal candidates for the CEO position <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Sticking points<\/h2>\n<p>Tavares\u2019 cost-cutting had hurt in particular his relationship with US dealers and the <a href=\"https:\/\/nypost.com\/2023\/10\/23\/business\/uaw-expands-strike-hitting-stellantis-key-ram-truck-plant\/\">United Auto Workers union<\/a>, analysts said.<\/p>\n<p>In a Sept. 10 letter to Tavares,\u00a0Stellantis\u00a0national dealer council president Kevin\u00a0Farrish\u00a0complained that the pursuit of short-term profits meant \u201crapid degradation\u201d of the Jeep, Dodge, Ram and Chrysler brands, adding: \u201cYou created this problem.\u201d<\/p>\n<p>The UAW has threatened to strike against the automaker over delayed investments, prompting lawsuits from\u00a0Stellantis\u00a0accusing the union of breach of contract.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Tavares\u2019 cost-cutting had hurt in particular his relationship with US dealers and the United Auto Workers union, analysts said. <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Another sticking point for investors was Tavares\u2019s hardline approach to the European Union\u2019s upcoming tougher emissions targets at a time of slowing EV sales, said Massimo Baggiani, founder at Niche Asset Management and a\u00a0Stellantis\u00a0shareholder.<\/p>\n<p>It \u201cfrightened\u201d investors and major shareholders, he said.<\/p>\n<p>CEO Tavares\u00a0<a href=\"https:\/\/www.reutersconnect.com\/all?search=all%3AL8N3L61CT&amp;linkedFromStory=true\" target=\"_blank\" rel=\"nofollow noopener\">repeatedly<\/a>\u00a0confirmed pledges by\u00a0Stellantis\u00a0to meet the EU goals and said last-minute changes or delays to the regulation, as proposed by European auto lobby ACEA, were unfair.<\/p>\n<p>New rules known as Corporate Average Fuel Economy (CAFE) from Jan. 1 will require around 21% of the firm\u2019s total sales during 2025 to come from electric vehicles.<\/p>\n<p>Should it miss the target, it will have to pay other companies with lower emissions to pool emissions and reduce their average CO2 emissions or pay a fine.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Another sticking point for investors was Tavares\u2019s hardline approach to the European Union\u2019s upcoming tougher emissions targets at a time of slowing EV sales, a shareholder said. <span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Stellantis\u2019 current EV sales mix in the EU is around 12%.<\/p>\n<p>Europe chief Jean-Philippe Imparato warned last month in an interview with Italian newspaper Milan Finanza that fines could be as much as 3 billion euros ($3.1 billion) if it did not manage to comply.<\/p>\n<p>Tavares\u2019 early exit despite his determination to turn things around before 2026 shows how serious the problems at the group are, Bernstein analyst Stephen Reitman said.<\/p>\n<p>\u201cIt points to what we\u2019ve said for a long time \u2013 that the problems are very deep and they\u2019re not easily fixed now,\u201d he said.<\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/nypost.com\/2024\/12\/02\/business\/stellantis-shares-tumble-after-ceo-carlos-tavares-abrupt-resignation\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Outgoing CEO Carlos Tavares clashed with\u00a0Stellantis\u2019 board over his plans to quickly turn around the ailing US business by cutting costs, rather than focusing on long-term strategy, investors and bankers &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=132704\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-132704","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/132704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=132704"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/132704\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=132704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=132704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=132704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}