The automotive industry has witnessed a series of mergers and acquisitions in recent years, and the merger between PSA Group and Fiat Chrysler Automobiles (FCA) to form Stellantis is no exception. Since its inception, this multinational corporation has been at the forefront of the automobile market, aiming to create a stronger synergy in research and development, production, and supply chain management. However, as the company navigates this new era, CEO Carlos Tavares is facing significant challenges. Sources reveal that certain missteps and indiscretions on his part have raised questions about his leadership capabilities at the top position.
Carlos Tavares has demonstrated a track record of impressive accomplishments throughout his career. As the former CEO of PSA Group and currently at the helm of Stellantis, he has transformed the company, making drastic changes to increase the automaker’s growth and profitability. As he is still considered a visionary leader by many, Tavares’s mistakes have left many employees and stakeholders baffled.
Early in his tenure, Tavares faced backlash over the abrupt dismissal of key executives from the merged companies. The decision’s swift nature hindered the development of smoother integration processes, generating frustration among employees, leading some to doubt his leadership style. In addition, his decision to designate a weaker company, PSA, as the overarching brand has created confusion and led to a lack of identity within the workforce. This has further heightened his challenge, as employees are struggling to establish their place within the new conglomerate, cost-cutting measures in place, and potential restructuring initiatives. Support for Tavares was crucial due to these publicized incidents.
Furthermore, Tavares’s reputation for arrogance has led to negative consequences within the organization. His high-pressure approach and public lectures to underperforming teams have left some employees feeling belittled and undervalued. Tavares’s penchant for transparency has led teams to be overly scrutinized externally and criticized publicly, further heightening the sense of public embarrassment and internal turmoil.
As Stellantis continues to evolve amidst uncertainties in the global automotive industry, it is crucial for the company to continue addressing the concerns that have arisen from Tavares’s leadership approach. Despite the mixed leadership approach, Stellantis’ ultimate success will depend on addressing mistakes and the ability to fulfill the conglomerate’s goals.
