Former Stellantis CEO Carlos Tavares Warns Automaker Faces Potential US Europe Split

Former Stellantis CEO Carlos Tavares has expressed concerns about the potential breakup of the multinational automaker, warning that the balance between its French, Italian, and U.S. operations could fail if internal and external pressures persist. He highlighted challenges including declining car demand in Western markets, growing competition from Chinese manufacturers, and geopolitical tensions that complicate the company’s industrial strategies. Tavares suggested that Stellantis might have to split its European and North American divisions, with American brands focusing on the U.S. market and European brands possibly coming under Chinese ownership. During his tenure, Tavares implemented cost-cutting measures and shifted production to lower-cost countries, which drew criticism from labor unions and governments. Stellantis’ current CEO Antonio Filosa is aiming to stabilize the company by investing heavily in the U.S. market and reducing European production, though labor concerns remain. Tavares emphasized that maintaining the group's unity requires daily management attention to navigate these complex pressures and avoid fragmentation.