Auto industry experts, employees react to Stellantis CEO Carlos Tavares resigning
(CBS DETROIT) — After having a strained relationship with the UAW, dealerships and employees, Stellantis CEO Carlos Tavares has stepped down. Tavares was under a five-year contract that was set to expire in 2026.
"It's good news that Carlos Tavares, the CEO of Stellantis, is resigning," said Jan Griffiths, an automotive industry expert and founder of Gravitas Detroit.
Griffiths said the company under the Tavares reign has been a disaster.
"It is good news for the company, it is good news for the employees, it is good news for the UAW, it is good news for the dealers and it is good news for the suppliers," Griffiths said.
Griffiths said in order for Stellantis to recover from the mismanagement it faced under Tavares, the new CEO will have to mend the fractured relationships with dealerships, the UAW and employees.
"Carlos Tavares blamed and threatened to take legal action against the UAW, his own family. The dealers sent him an open letter in September saying, 'Hey, something's got to change. He's not listening to the dealers.' The shareholders have taken legal action against him. They're not happy the Italian government is not happy with him, and now apparently the board is not happy with him," Griffiths explained.
Wayne State professor and supply chain expert, Dr. John C. Taylor, said the company has a whole list of issues to address, including being disconnected from its customer base.
"And they're going to have to do what consumers want and give them the products they want at the end of the day," Dr. Taylor said.
"Oh man, it is not looking too good, but hopefully it'll turn around," said Valarie Munn, who works at the Warren Truck Assembly Plant. "I am going to try to stay positive, and hopefully it'll turn around."
Munn is preparing to retire in a few years but said the news came as a shock.
"I have three more years, and I am done," said Munn. "I hate to say it like that, but I have three more years, and I am done. It is going to affect a lot of people."
Meanwhile, others were ready for the announcement with the notion it's about time Stellantis looks for new leadership.
"I do like it because he isn't doing much for this company," said Anthony Simonte, who works at Warren Truck Assembly. "It is going down the tubes. They lost a lot of their jobs, and I feel bad for them."
First things first, Griffiths said the company needs to find a leader focused on collaboration.
"The new leader will need to build those relationships back as quickly as possible in order for this company to move forward," she said.
Stellantis designs, manufactures and sells automobiles bearing its 14 brands, including Jeep, Chrysler, Dodge and Ram.
Company officials say a board committee is leading the search for a new CEO, and that the search is expected to be completed within the first half of 2025.
In the meantime, Stellantis chairperson John Elkann will lead an interim executive team.