On the same day Stellantis reported giving ex-CEO Carlos Tavares $40 million in compensation, the company’s chair, John Elkann, said that both United States tariffs and European emissions standards were threatening the auto industry.
Tavares’ extreme cost-cutting measures alienated suppliers, customers, employees, and dealerships around the world, but possibly most severely in the United States and Canada. In his final year, American marques saw massive delays in new product and sales drops in existing product. His compensation was approved by stockholders; a good deal of stock is owned by mutual funds, though, which vote shares on behalf of their members.
Elkann also said that Stellantis would choose a new CEO before July 1. Reuters said that only five candidates remained in contention, including internal hires Antonio Filosa, head of North America and South America, and Maxime Picat, head of procurement.
Elkann complained of “layer upon layer of additional compounding tariffs” for parts, which went above the 25% US rate for automotive imports, though he looked forward to a possible promised partial reprieve. (Tariffs are taxes paid by those in the country that levies them.)
He also complained about European emissions rules, maintaining the long tradition of auto executives calling emissions rules unrealistic.
In the face of punitive tariffs from the United States for their exports, both Europe and Canada have imposed their own tariffs while negotiating new trade agreements with other countries. China, in particular, seems to be gaining, with Europe and Canada expected to drop some of their barriers to Chinese cars.
Primary source: Reuters. Automotive News cited a $26 million payout.
David Zatz started what was to become the world’s biggest, most comprehensive Mopar site in 1994 as he pursued a career in organizational research and change. After a chemo-induced break, during which he wrote car books covering Vipers, minivans, and Jeeps, he returned with Patrick Rall to create StellPower.com for daily news, and to set up MoTales for mo’ tales.
David Zatz has around 30 years of experience in covering Chrysler/Mopar news and history, and most recently wrote Century of Chrysler, a 100-year retrospective on the Chrysler marque.
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