Carlos Tavares, Stellantis CEO, Steps Down

[edyvw]

Dodge, RAM, JEEP, and even Chrysler still have time to get out of this pickle. But things need to change. Case in point: that oil cooler issue. You just cannot let that go on for 10 years and do nothing. Toyota could get away with stuff like that (tailgate issue on Sienna II and III), but they are also steadily and reliably burning their customer credits. These guys don't have any credits.
Otherwise, they might end up under someone else's ownership or just crash and burn.

 

[CKN]

Do you mean Stellantis will sell the former Chrysler parts - or Stellantis will get bought ?

Stellantis has one of the lowest debt loads in the entire auto industry - like $30B long term debt on $200B in sales. There literally the best in the industry except for Tesla, 6X better than Ford, 4X better than GM.

Just about every auto OEM is going to need to restructure with the slow down in global sales and higher rates. However Stellantis has the balance sheet to do it. In fact, they may actually by in a position to buy someone.

Their stock price has plunged 40%. They are getting ready to burn through 10 billion Euro. Their sales in the U.S. has tanked.
quote-

That included a forecast for a cash burn of up to 10 billion euros ($10.6 billion), mostly due to slow sales and bloating inventories in its North American market, the group's profit powerhouse.

https://www.reuters.com/business/au...ceo-carlos-tavares-resigns-source-2024-12-01/
They have so many troubles-not only here, but in Europe as well. They are not buying anybody.
They will sell off RAM and Jeep. Everything else isn't worth much.

 

[Dave Hess]

CNBC said he and the board didn't agree on something or other. Family tiff.

The guy is 66, so was likely nearing his time either way.

https://www.cnbc.com/2024/12/01/stellantis-ceo-carlos-tavares-resigns.html

He’s older and wants to retire with golden parachute.

At that age why deal with the stress and aggravation…. ?

 

[RAVL]

Do you mean Stellantis will sell the former Chrysler parts - or Stellantis will get bought ?

Stellantis has one of the lowest debt loads in the entire auto industry - like $30B long term debt on $200B in sales. There literally the best in the industry except for Tesla, 6X better than Ford, 4X better than GM.

Just about every auto OEM is going to need to restructure with the slow down in global sales and higher rates. However Stellantis has the balance sheet to do it. In fact, they may actually by in a position to buy someone.

Go away with those facts!

Also last time I checked they were carrying more cash and cash equivalents than any other automaker including Toyota. The Chrysler /Stellantis hate here runs strong.

All the majors will have challenges negotiating the heavy costs being imposed by governments in the EV switch, as well as the continued impacts of higher product costs and interest rates being at more normal levels - no more free money for consumers.

Tavares made mistakes but he was not a moron. Anyone here with the requisite skill set should apply.

 

[hrv]

Dodge, RAM, JEEP, and even Chrysler still have time to get out of this pickle. But things need to change. Case in point: that oil cooler issue. You just cannot let that go on for 10 years and do nothing. Toyota could get away with stuff like that (tailgate issue on Sienna II and III), but they are also steadily and reliably burning their customer credits. These guys don't have any credits.
Otherwise, they might end up under someone else's ownership or just crash and burn.

They are dead....ESP Chrysler...

 

[demarpaint]

He should have left a long time ago. Hopefully they get their act together.

 

[97prizm]

Did they actually put an offer on the table? All I saw was more or less a social media post that they wanted it back?

Mr. Rhoades the great-grandson of Walter Chrysler sent a serious 17 page document to Stellantis outlining buying it back. Not sure if financial number were thrown around or not. Maybe they don't have enough cash or Stellantis wants too much for Chrysler.

 

[SC Maintenance]

Mr. Rhoades the great-grandson of Walter Chrysler sent a serious 17 page document to Stellantis outlining buying it back. Not sure if financial number were thrown around or not. Maybe they don't have enough cash or Stellantis wants too much for Chrysler.

Anyone can write a letter. Stellantis is publicly traded. If they made a real offer the board would be fiducially obligated to consider it, or they would all get sued by the shareholders - or specifically a attorney looking for a payout. The fact that they could just dismiss it means it wasn't a real offer.

Look at how Elon bought Twitter. He bought 9% of the publicly traded shares, then he made a multi billion dollar offer. The management likely didn't want to sell either, but they had no choice - the shareholders would have sued them.

It was a publicity stunt.

 

[SC Maintenance]

Their stock price has plunged 40%. They are getting ready to burn through 10 billion Euro. Their sales in the U.S. has tanked.
quote-

That included a forecast for a cash burn of up to 10 billion euros ($10.6 billion), mostly due to slow sales and bloating inventories in its North American market, the group's profit powerhouse.

https://www.reuters.com/business/au...ceo-carlos-tavares-resigns-source-2024-12-01/
They have so many troubles-not only here, but in Europe as well. They are not buying anybody.
They will sell off RAM and Jeep. Everything else isn't worth much.

There in the same trouble as everyone else. They all spent too much on EV investments for a market that doesn't work, and loaded up on $80K pickup trucks people could never afford but thought they could when interest rates were zero. The only difference between them and GM / Ford is the lower number of billions of debt on their balance sheet.

European car markets are collapsing. Look at VW shutting plants and laying people off. There facing stiff price competition from China and most of their markets have been in recession for at least a year.

None of the legacy auto's is in good shape, but the path out for Stellantis is much easier - they need to issue a bunch of bonds in Euro while there interest rates are still low, and fire sale their inventory in the USA. From there, there in the same boat as everyone else, with a much cleaner balance sheet.

Your letting your dislike of your brand bias your stock analysis. There not selling Ram/Jeep.

 

[andrew_j]

Jeep brand is a curse to whatever maker acquires it.

Who thinks they can beat it?

 

[javacontour]

Jeep brand is a curse to whatever maker acquires it.

Who thinks they can beat it?

Is it a curse to those who acquire it, or is it linked with other, less robust/healthy brands.

One might say Jeep help bolster Chrysler back in the day.

I do think it lives on image more than engineering, but that's a whole other issue. The "Jeep Thing" is not my thing and that's okay.

I think making "Fiat Jeeps" and similar badge engineer is more damaging to Jeep by the parent than the other way around.

But I'm just one guy, so take that for what it is.

 

[97prizm]

Anyone can write a letter. Stellantis is publicly traded. If they made a real offer the board would be fiducially obligated to consider it, or they would all get sued by the shareholders - or specifically a attorney looking for a payout. The fact that they could just dismiss it means it wasn't a real offer.

Look at how Elon bought Twitter. He bought 9% of the publicly traded shares, then he made a multi billion dollar offer. The management likely didn't want to sell either, but they had no choice - the shareholders would have sued them.

It was a publicity stunt.

Elon tryed to back out of Twitter but was forced to buy it as he said if they wouldn't sell it to him he'd sell all of his shares and crash the stock price

 

[SC Maintenance]

Elon tryed to back out of Twitter but was forced to buy it as he said if they wouldn't sell it to him he'd sell all of his shares and crash the stock price

Yes, he looked under the hood and figured out there was more bots than users, so he wanted to back out. I never said it was a good purchase. However he still bought it.

Buying a publicly held company or part of one is easy. You make an offer, with backed financing, either the shareholders or board approve the purchase or they don't. There can be negotiations along the way. Everyone knows this.

Sending a 17 page letter is meaningless. Everyone knows this also. Which is 100% proof it was a publicity stunt.

Put simpler, 17 pages of talk is cheap.

 

[BMWTurboDzl]

An overdue departure, IMO

https://www.cnn.com/2024/12/01/business/stellantis-ceo-carlos-tavares-steps-down/index.html

The regulatory landscape has changed in various markets so they need to find a new CEO who will play nice.

 

[Pablo]

Is he on the lam?

 

[ammolab]

Give me a HO straight six, a manual tranny, and 4 doors.

My Chevy SS Sport sedan can’t last forever

 

[Marcozi]

Stellantis is the walking dead. I give it 5 years before it goes belly up.

 

[hemioiler]

Stellantis is the walking dead. I give it 5 years before it goes belly up.

Stellantis in its current form as a group of American/European brands? Very likely well before 5 years that Stellantis is done or brands spun out from it.

But Ram and Jeep are cash cows, they're not going anywhere unless they get run into the ground further, as of now they're still doing very well. With new leadership who actually understands the American market they would be more than fine.

Chrylser and Dodge, they're in far rougher shape. They should have had the 2025 i6 charger in production this summer already.

 

[gfh77665]

I hope a new CEO comes in and Stellantis soars.

Just to tick off all the haters grinning, rubbing the hands together, wishing it the worst.

 

[meep]

I’d love to see them put some healthy competition back on the table. Nobody seems happy with quality across the board, and some effective products and/or pricing would be healthy for the consumer.