Stellantis shares stabilized after news of CEO Carlos Tavares’s demise, as investors speculated about the implications.
Some critics said Tavares downfall resulted from the company’s problems in the U.S., but others suggested his overall record wasn’t as strong as it once appeared. Tavares’ sudden change in direction after his vigorous opposition to European Union CO2 rules might have soured relations with the board.
This grouping of 14 brands from across Europe and the U.S. which often appeared to fight against each other for sales, was initially hailed as a huge success. His methods made impressive profits quickly, as overlapping technologies were ruthlessly dropped and economies of scale exploited.FBI Warns Smartphone Users—Hang Up And Create A Secret Word Now
Stellantis brands in the U.S. include Dodge, Ram, Jeep and Chrysler. In Europe there are Peugeot, Citroen, Fiat, Alfa Romeo, Lancia, DS, Opel, Vauxhall and Maserati.Investment researcher Bernstein, in a report entitled “When the Wheels Come Off – Tales of Automotive Exits", said auto CEOs are celebrated like Formula 1 drivers when they succeed, but “a single misstep can lead to a spectacular spinout”.
Stellantis had said Tavares was leaving early because his views on the company’s future clashed with the board, but didn’t elaborate. Subsequently, media reports asserted the argument was about Tavares refusing to back the industry push to renegotiate the EU CO rules which insist 80% of new sedan and SUV sales are EVs by 2030, and 100% by 2035.That was strange because Tavares had been the most adamant industry critic of the rules.
“I can’t imagine a democratic society where there is no freedom of mobility because it’s only for wealthy people and all the others will use public transport,” Tavares said in a speech in 2020.
Carlos Tavares John Elkann Automotive News Bernstein UBS Profit Warning Cash Flow Burn
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Forex Today: Markets stabilize, investors assess Fed announcements in aftermath of Trump victoryHere is what you need to know on Friday, November 8: Following two days of highly volatile action, financial markets stay relatively quiet early Friday as investors digest the Federal Reserve's (Fed) policy announcements following Donald Trump's victory in the presidential election.
Read more »
Stellantis CEO Carlos Tavares clashed with board before quitting as shares tumbleStellantis is struggling to get rid of overcapacity and bloated inventory in its key North American market, at a time when global demand remains sluggish.
Read more »
Stellantis Shares Slump More Than 7.5% After CEO’s Sudden ResignationSiladitya Ray is a reporter on the Forbes news team who covers major world news stories breaking overnight with a focus on technology and online platforms. He joined Forbes in 2020 and works in New Delhi.
Read more »
Stellantis shares slide 8% after CEO departure as broader European markets decline: Live updatesEuropean markets are expected to kickstart the final month of trading this year in flat to lower territory Monday.
Read more »
Evercore ISI upgrades BioNTech, says 'chaos' of RFK Jr.'s nomination presents buying opportunityNow may be the time for investors to buy shares of BioNTech, according to Evercore ISI.
Read more »
Midday Trading: Kohl's Shares Plunge Amid Uncertain Holiday SalesMidday trading saw significant movements in various companies. Kohl's shares fell 18% due to a cut in its sales outlook. Amgen's stock fell over 3% despite positive weight loss drug trial results. Morgan Stanley's shares dropped more than 2% after HSBC downgraded its stock. Best Buy's stock fell 7% after slashing its sales forecast. Franklin Resources' shares dropped over 3% due to fraud charges against a former executive. Dana Inc. saw a 9% increase after naming a new CEO and announcing restructuring plans. Abercrombie & Fitch's shares declined by about 5% despite beating earnings forecasts. Royal Caribbean's shares rose 2% after Bernstein initiated coverage with a positive rating. Stellantis shares dropped over 5% after Trump's comments on trade.
Read more »