By DCB Editorial, December 3, 2024
All empires eventually expire, and Sterile Corporate Monolith Stellantis appears to be a lumbering giant—too big to move quickly and too slow to react to changing market forces. Markets are always evolving, which means sales inevitably fluctuate. However, for the sterile corporation, sales have plummeted to record lows.
The global automaker, which produces vehicles under brands such as Jeep, Fiat, Peugeot, and Maserati, is facing more than just low sales. Cheaper, equally capable Chinese rivals are rapidly eroding market share from legacy European brands, like a swarm of locusts.
Additionally, the ongoing war in Ukraine has disrupted the supply of cheap natural gas, severely impacting European manufacturing profitability. The response has been swift: cuts, factory closures, and mass layoffs. Carlos Tavares, the CEO, was ousted for not complying quickly enough with these drastic measures.
The sudden and unexpected ousting of Tavares comes amid the company’s struggles in the U.S. market and its transition to electric vehicles. Although Stellantis achieved record profits in 2023, its focus on short-term gains has left it ill-prepared for the competitive EV market.
The company’s U.S. sales have dropped significantly, and its stock price has tanked. The board’s decision to replace Tavares underscores the mounting pressure to accelerate its EV strategy and reclaim market share.
