Stellantis execs say former CEO was out of touch with Americans

Following a rough few months at Stellantis (STLA) , the parent company of beloved American brands Chrysler, Jeep, Dodge and Ram Trucks is going through a landmark transition period.

The multinational automaker, which also includes European nameplates like Citroen, Fiat, and Maserati, has sailed well past the point of no return. It enacted significant cost-cutting measures, such as major C-suite shuffling, laying off American factory workers, and addressing major inventory problems affecting its 14 brands.

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The most symbolic change came right at the top. Its CEO, Carlos Tavares, recently departed the company following rising tensions between him and other Stellantis executives.

In a new report, sources close to the automaker exposed the extent of how much of a polarizing figure the former chief executive was, characterizing Tavares as one who created a divisive rift in its boardrooms and offices.

Tavares, the selfish CEO

Speaking to CNBC, several former and current Stellantis executives and other U.S.-based employees described the former CEO as a selfish leader who would sacrifice the business to squeeze out every last cent.

Before Tavares became the CEO of Stellantis, which was formed in 2021 through a merger of Fiat Chrysler Automobiles and French automaker Peugeot, the figurehead gained a reputation as a brash businessperson who was unafraid to shake up c-suites during his tenure at Renault under the notorious Carlos Ghosn.

Though earning money is a goal in any business, one Stellantis-affiliated individual who spoke to the business publication said that the pressure to cut costs felt like having a pistol "to your head" and characterized Tavares as jaded.

"If you think you know everything, you’re not going to listen to anybody else," they said.

Additionally, another individual noted that the former CEO often blamed American executives for company mistakes without giving himself any moment to self-reflect.

"If you don’t know the market, you don’t know the customers, you can’t make the right decisions," they said of Tavares.

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Tavares' work attitude was incompatible with the American work ethic, sources say

This disconnect extended to how the former CEO worked and treated work, which rubbed American Stellantis execs and employees the wrong way.

According to the Stellantis execs and employees, Tavares had a fairly 'European attitude' towards an automaker responsible for one of the most prolific American auto brands.

They noted that Tavares treated Stellantis like a company based in Europe, not one with offices on multiple continents, each with its own work culture.

The most glaring sign of this disconnect was exposed during summer 2024. It is common practice for European workers and executives to take as much as a month off during these months; however, since problems were brewing at its operations in the U.S., Tavares announced that he was going to take time off during his month-long "summer break" to help alleviate problems at the ground level in North America.

Additionally, the fractured work culture seeped into the habits of U.S.-based Stellantis executives. Those who spoke with CNBC said they often had to log into long meetings during regular business hours in Europe (the middle of the night in Detroit) before working a full day on U.S. hours.

"When Tavares started, he said the center of the company is somewhere in the Atlantic," a former Stellantis exec told CNBC, "[...] but it became very clear to us that the center of the company was in France."

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Tavares was behind the death of an American icon, sources say.

One notable mark that Tavares' leadership left on Stellantis is his push to clean up its emissions, a move deemed incompatible with U.S.-based executives who have mountains of knowledge about the U.S. market.

Though he is no longer with the automaker, his influence is still present. Stallantis' future U.S.-bound models include a slew of electrified vehicles, including the Ram 1500 Ramcharger hybrid, the all-electric Ram REV, and the all-new Dodge Charger.

Notably, the 2025 model of the beloved Dodge Charger — the replacement for the beloved Charger and Challenger — shocked muscle car fans earlier this year when it was revealed that it ditched the Hemi V8 for the choice of either a smaller, turbocharged inline-6 motor or a fully electric powertrain complete with artificial V8 exhaust noises.

According to the sources, Tavares was the spearhead behind the decision to kill off the beloved gas-guzzling Hemi V8 engines that had become a company signature.

"Everybody wanted to keep [Hemi]," said the source. "But it was, ‘You need to be greener’."

Tavares' exit ushers in change at Stellantis

As part of a shift to drive growth in Stellantis' most lucrative sales region, an old, familiar face is returning to signal much-needed change during the next few months under the leadership of chairman John Elkann and an interim executive community.

One huge signal is the return of retired Ram Trucks CEO Tim Kuniskis to his old position.

This move has Stellantis dealers, a critical group Tavares alienated during his tenure, ecstatic about the future. His reputation as a knowledgable, "down-to-earth guy" is welcomed by dealers who note that he has "the ability to transcend and make an impact across all brands even if he’s focusing on one or two of them."

In a media appearance on December 10, the returning Ram CEO noted that he came back because he was "bored" and "missed the fight," adding that there was a more altruistic reason for his return.

“We’re getting our ass kicked,” Kuniskis said. “Let’s be perfectly honest: We are getting our ass kicked. You see all the numbers, but it’s going to change. It’s getting better, and it’s going to change.”

Stellantis NV is traded on the New York Stock Exchange as STLA.

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This story was originally published December 11, 2024, 3:33 PM.