Stellantis CEO Carlos Tavares resigns

[aldo98229]

"My impression is that there is a great deal of “woe unto me” mentality has crept into the mindset of your fine, admired and esteemed nation.""

Fine points but I will tell you that Jeep (especially the MB, CJ, Wrangler stream) is deeply woven into American fabric and we are very sensitive to how fast car companies can screw it up. It was always a simplistic off-road leader, and its overseas desire was linked to that.

The fact that Stellanis sold out completely for near term high profits so that they could pad their executive bonuses just really backfired.

The basic Wrangler is so marked up that you price people into used ones and viola, your new sales take a nosedive.

In other models, they do not offer a decent offroad worthy version. Why don't the "Trailhawk" versions have a revised interior to satisfy off roaders? The rounded luxury interiors of the GCs and Compasses are a joke in a Trailhawk and obviously dictated for commonality to save costs and decided by no one who actually does anything but mall crawl.

I agree.

Jeep started to come undone at the seams when Marchionne, in his infinite wisdom, decided that Jeep was going to be "luxury," and follow Land Rover's strategy.

While Jeep has had a "luxury" positioning in overseas markets, Jeep as "luxury" is a non-starter here in N.A., its largest and most profitable market.

Over the years, Jeeps commanded a price premium over their domestic competitors, but that was justified by Jeep's superior off-road engineering and capability, not because N.A. consumer viewed Jeep as a "luxury" marque.

When JL was being developed, FCA focused too much on the luxury, comfort and convenience features that'd allow Jeep to drive up MSRPs, and not enough in pushing Wrangler's off-road envelope for the long-term.

Fifteen years of sticker editions and badge engineering without any serious investment in development have taken their toll. It truly is a sad state of affairs.

Hopefully, whoever takes the reigns at Stellantis understands that for Jeep to do well globally, first it needs to do well here.

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[yoda13]

Interestingly enough, the other company he was boss of, Nissan, is also in dire straights.

Well, there is at least one common denominator there…is it relevant or coincidence?

 

[BuckeyeButch]

Chrisler/Jeep needs a wholly owned USA company to fix things and stop looking for help across the pond.

 

[GeneralMaximus]

Jeep started to come undone at the seams when Marchionne, in his infinite wisdom, decided that Jeep was going to be "luxury," and follow Land Rover's strategy.

To Marchionne’s defense, he gave the consumers what they wanted. He said so himself, the Grand Cherokee saved Jeep from going under. The people wanted an offroad capable SUV that had creature comforts. Before that, Jeep was known for the 2 Door wrangler. But during his leadership, the 4 door wrangler overtook it in popularity. Regardless, these “luxury” overpriced offerings, may not be what he had ultimately envisioned.

Jeep’s 2018 Q2 earnings came out the day Marchionne’s death was announced. $1.1 Billion in profits.

 

[aldo98229]

To Marchionne’s defense, he gave the consumers what they wanted. He said so himself, the Grand Cherokee saved Jeep from going under. The people wanted an offroad capable SUV that had creature comforts. Before that, Jeep was known for the 2 Door wrangler. But during his leadership, the 4 door wrangler overtook it in popularity. Regardless, these “luxury” overpriced offerings, may not be what he had ultimately envisioned.

Jeep’s 2018 Q2 earnings came out the day Marchionne’s death was announced. $1.1 Billion in profits.

Profits are important, no doubt. But they are short-term and backward-looking.

FCA, and now STLA, have become so obsessed with "margins," that their overall strategy makes no more sense.

 

[Jrgunn5150]

I'm sure he'll find some solace in his 37 million salary for the year.

Same as investors will take solace in the 3 billion in stock buybacks that just completed.

Even if the board isn't happy with only 7% profit for the year.

Terrible to be the number 4 automaker in the world.

Gonna fail any day now, click bait said so.

 

[GladiatorPilot23]

Bring back Antonio Filosa!

 

[Jeepdoggydog]

The man was an empty suit. He was always getting caught by surprise and took responsibility for nothing.

Wonder how many millions it took to get him to sign that resignation letter.

FIAT heir John Elkann will be in charge until a replacement is found.

https://www.clickondetroit.com/news...o-carlos-tavares-resigns-automaker-announces/

I am very interested how much Stelantis "paid him" to leave, or any form of a "golden parachute" to hasten his exit. Bad behavior should never be rewarded.

 

[Jrgunn5150]

The only bad behavior he engaged in was keeping prices too high for too long.

And it was probably a conscious choice.

Look, we're gonna pay you 40 million this year, you be the fall guy, do the stock buyback anyway, ride off into the sunset.

The company, and none of the US brands, are going anywhere.

As usual the media has everyone spun up about some crap they imagined.

 

[WestwallNF104A]

Well, there is at least one common denominator there…is it relevant or coincidence?

Don't know. He's been away from Nissan for awhile, but I suppose his decisions could still be affecting them.

 

[BourbonRunner]

What’s the consumer want tho lol

Reliable vehicles that are relatively affordable (relative being the operative term). Vehicle pdates within reason to at minimum keep pace with the competition. A good dealership experience. This isn't much to ask, and though corporate doesn't have absolute control over the franchisees, they can exert influence much better than they have.

I agree.

Jeep started to come undone at the seams when Marchionne, in his infinite wisdom, decided that Jeep was going to be "luxury," and follow Land Rover's strategy.

While Jeep has had a "luxury" positioning in overseas markets, Jeep as "luxury" is a non-starter here in N.A., its largest and most profitable market.

I'm not so sure that's the case. The SJ Wagoneer was a luxury SUV before those were a thing and the ZJ's upper trims were luxury option-laden versions of the base along the same lines as the Town & Country was to the Voyager/Caravan. Even the Wrangler and XJ had their own luxury trims over the years.

Point being that you could get a base model and then a loaded one that was just as capable as the base off road for most of Jeep's modern history. In that they gave the consumer what they wanted.

I think the bigger issue is Stellantis relied too heavily on the USDM for profits to keep the rest of itself afloat, and saw an opportunity to jack the prices up here to further that self-immolating logic.

Hopefully, whoever takes the reins at Stellantis understands that for Jeep to do well globally, first it needs to do well here.

On this we agree completely.

 

[Redfour5]

Interestingly enough, the other company he was boss of, Nissan, is also in dire straights.

They hired the NIssan CEO? Sheesh, I didn't know that. No Wonder. I saw an interview with the chief "propulsion" division President, who goes back to the original team that brought in the Hemi's. He seemed real upbeat and said with some emphasis he was looking forward to the future...and seemed to mean it.

 

[Redfour5]

Reliable vehicles that are relatively affordable (relative being the operative term). Vehicle pdates within reason to at minimum keep pace with the competition. A good dealership experience. This isn't much to ask, and though corporate doesn't have absolute control over the franchisees, they can exert influence much better than they have.

I'm not so sure that's the case. The SJ Wagoneer was a luxury SUV before those were a thing and the ZJ's upper trims were luxury option-laden versions of the base along the same lines as the Town & Country was to the Voyager/Caravan. Even the Wrangler and XJ had their own luxury trims over the years.

Point being that you could get a base model and then a loaded one that was just as capable as the base off road for most of Jeep's modern history. In that they gave the consumer what they wanted.

I think the bigger issue is Stellantis relied too heavily on the USDM for profits to keep the rest of itself afloat, and saw an opportunity to jack the prices up here to further that self-immolating logic.

On this we agree completely.

One of the things I read or saw was he for as long as he has been there has used Ram and Jeep as cash cows for the rest of Stellantis without taking care of the cows. The money was going back into attempting to revive the European brands. And he put people in charge of the American brands who did NOT have a clue and caused many of the guys WHO DID to leave out of frustration. He apparently didn't take constructive criticism well either. We saw him snap at the Dodge Family when they asked to buy like Dodge Chrysler brands... They have a vested interest in those... He had threatened those brands just a few days before as swim or sink so then he gets back in the face of someone wanting to buy them? What a dick. He set the stage with similar dynamics at Nissan. He milked the Frontier for years longer than he should have for example...

He starved the cows and nothing thrived and now what's left are a bunch of emaciated brands. And Stellantis can't get rid of their cash cows even though they are weakened as that's all they got with their European brands falling on their faces...

What a mess. Good Riddance, glad the board saw the handwriting on the wall as him staying till 2026 could just be the last nail in the coffin. Now maybe they can recover.

 

[legacy_etu]

Don't know. He's been away from Nissan for awhile, but I suppose his decisions could still be affecting them.

Overheard in Stellantis boardroom: "Note to self, don't hire anyone from Nissan........."

 

[BourbonRunner]

One of the things I read or saw was he for as long as he has been there has used Ram and Jeep as cash cows for the rest of Stellantis without taking care of the cows. The money was going back into attempting to revive the European brands. And he put people in charge of the American brands who did NOT have a clue and caused many of the guys WHO DID to leave out of frustration.

No argument there.

He apparently didn't take constructive criticism well either. We saw him snap at the Dodge Family when they asked to buy like Dodge Chrysler brands... They have a vested interest in those... He had threatened those brands just a few days before as swim or sink so then he gets back in the face of someone wanting to buy them? What a dick. He set the stage with similar dynamics at Nissan. He milked the Frontier for years longer than he should have for example...

No love lost for Tavares here and yes, he's a dick but the Dodge offer was not a serious one. He had zero financial backing, zero experience in the automotive space let alone running a company bigger than a cottage furniture outfit. It was an appeal to nostalgia. Did Stellantis/Tavares handle it professionally and appropriately? Not in the least.

With regards to Nissan I thought the majority of his time was actually at Renault as Ghosn's number 2?

He starved the cows and nothing thrived and now what's left are a bunch of emaciated brands. And Stellantis can't get rid of their cash cows even though they are weakened as that's all they got with their European brands falling on their faces...

What a mess. Good Riddance, glad the board saw the handwriting on the wall as him staying till 2026 could just be the last nail in the coffin. Now maybe they can recover.

100%.

Overheard in Stellantis boardroom: "Note to self, don't hire anyone form Nissan........."

I dunno, pretty sure Carlos Ghosn isn't doing much of anything recently...

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