Former Stellantis CEO Carlos Tavares Speaks Out on Dieselgate, Company's Future
Carlos Tavares, the former CEO of Stellantis, has spoken out about the company's future, the European Commission's handling of the Dieselgate scandal, and his departure from the automotive giant. In a series of interviews, Tavares shared his views on the challenges facing Stellantis and the broader automotive industry.
Tavares expressed concern about the European Commission's response to the Dieselgate scandal in 2015. He believes the Commission's actions were excessive and unfairly targeted the entire European auto industry. Instead, he argues, the Commission should have focused solely on Volkswagen, the company responsible for cheating on CO₂ emissions.
Looking ahead, Tavares questions the long-term survival of Stellantis, citing the delicate balance between Italy, France, and the U.S. He warns that this balance could shatter, given the company's multi-party management, including majority shareholder Exor, led by John Elkann. Tavares' departure in December 2024 was due to a loss of trust with Elkann, stemming from strategic differences.
Tavares remains unapologetic about his focus on cost-cutting, even when it led to job losses. He argues that such measures are essential for a company's survival. He also believes that innovation, funded by maximizing productivity in areas of excellence, is key to staying competitive.
Regarding the automotive industry's future, Tavares suggests a phased ban on internal combustion engine vehicles based on their CO₂ output. This should be paired with a gradual mandate to increase the share of electric cars. He also raises concerns about China's growing influence in Europe's automotive industry, due to the EU's focus on electric vehicles.
Carlos Tavares' insights into Stellantis' future and the broader automotive industry offer a candid perspective on the challenges and opportunities ahead. His views on the Dieselgate scandal, the company's management structure, and the need for innovation and cost-cutting strategies provide valuable insights into the complex landscape of the global automotive industry.
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