Carlos Tavares has resigned as CEO of Stellantis Group. Before the new CEO takes office, Stellantis Group will establish an interim executive committee chaired by the group's chairman, John Elkann.
Tang Weishi is the soul of Stellantis Group, who once saved Peugeot Citroen from bankruptcy; He also led the merger of Peugeot Citroen and Fiat Chrysler, which led to the birth of the Stellantis Group. In 2023, under his leadership, Stellantis Group invested in the new Chinese car manufacturing force, Zero Run Motors, and began to introduce Zero Run Motors' electric vehicles into the European market.
In October of this year, Stellantis Group announced that Tang Weishi will step down as CEO of the group and retire after his term ends in early 2026. However, his sudden early resignation today has sparked widespread speculation from the outside world.
Or resign due to 'differences of opinion'
The disagreement among the top management or the direct reason for Tang Weishi's departure.
Henri de Castries, Senior Independent Director of Stellantis Group, said, "Different perspectives have emerged in recent weeks, leading to today's decision by the group's board of directors and CEO
Tang Weishi's departure this time is very sudden. Stellantis Group has not yet announced the candidate for the new CEO, but has stated that it will complete the appointment of the new CEO in the first half of 2025. Before the new CEO takes office, Stellantis Group will establish a new interim executive committee chaired by the group's chairman, John Elkann.
Regarding Tang Weishi's departure, John Elkann, Chairman of Stellantis Group, said, "We appreciate Tang Weishi's loyal service over the years and his role in creating Stellantis Group and previously turning PSA Group and Opel brand around, which has put us on the path to becoming a global leader in the industry
Tang Weishi joined the Peugeot Citroen Management Committee on January 1, 2014 and has been a key figure in the Stellantis Group for the past 10 years. He first saved Peugeot Citroen, which was on the brink of bankruptcy; Later, he led the merger of Peugeot Citroen and Fiat Chrysler, ultimately leading to the official establishment of Stellantis Group in 2021.
Under the leadership of Tang Weishi, Stellantis Group will reach its peak of development in 2023. In 2023, Stellantis Group's global car sales reached 6.17 million units, ranking fourth in the world after Toyota, Volkswagen, and Hyundai Kia Group. Stellantis Group's revenue in 2023 will also reach 189.5 billion euros, ranking among the top in the industry.
Entering 2024, Stellantis Group's performance has sharply declined. Net revenue of 118 billion euros was achieved in the first three quarters of 2024, a year-on-year decrease of 18%; The overall shipment of automobiles was 4.105 million units, a year-on-year decrease of 15%.
Regarding this year's performance, Tang Weishi admitted that it did not meet expectations. Upon investigation, he believes that the industry environment has brought challenges and operational issues.
According to media reports, in order to reduce costs and increase efficiency, Tang Weishi is vigorously promoting layoff plans in the North American market. For example, on November 7th this year, he announced the indefinite layoff of over 1000 people at the Toledo Assembly Complex in Ohio, USA; At the same time, it has expressed consideration for promoting the sale of its unprofitable brands. On the other hand, Tang Weishi's public support for the EU's 2025 new emission regulations has sparked dissatisfaction among traditional fuel distributors in Europe.
The decline in performance and the simultaneous "offending" of two major markets are considered by the industry to be the underlying reasons for Tang Weishi's resignation as CEO.
Promote cooperation between Stellantis Group and Leapmotor
Stellantis Group and Tang Weishi both have a strong connection with the Chinese automotive industry.
In the era of traditional fuel vehicles, Peugeot Citroen, one of the predecessors of Stellantis Group, established a joint venture with Dongfeng Motor Corporation in 1992- Dongfeng Peugeot Citroen Automobile, to produce and sell cars under the two major brands of Citroen and Peugeot in China. In 2015, Dongfeng Motor Corporation achieved a peak of annual sales of over 700000 vehicles, ranking among the top joint venture car companies in China.
But the good times didn't last long. In 2023, the annual sales of Dongfeng Motor Corporation will decline to 80345 units, a decrease of 88% from its peak period. In this context, Dongfeng Motor Corporation has proposed measures to improve the operational efficiency of the company's internal and external operations, and promote the development strategy of "Dongfeng Manufacturing, Global Sales". In other words, Dongfeng Motor Corporation will increase the proportion of overseas sales of its automotive products.
In October 2023, Dongfeng Motor Group expressed support for Dongfeng Motor Corporation's exploration and development of new models, utilizing its system advantages to actively integrate into Dongfeng's new energy business map, and promoting Dongfeng Motor Corporation to press the "acceleration key" for its new energy transformation.
Stellantis Group has also established joint ventures with Changan Automobile and GAC Group, including Changan PSA and GAC FCA. But Changan PSA was ultimately sold by both shareholders in 2019, and GAC FCA was declared bankrupt in 2022 despite losses. Shenlong Automobile has become the "only seedling" of Stellantis Group in the Chinese market.
Despite poor business performance, Stellantis Group and Tang Weishi have not given up on the Chinese market.
In October 2023, Stellantis Group and Leapmotor announced that Stellantis Group would invest approximately 1.5 billion euros to acquire a 20% stake in Leapmotor and hold two board seats. At the same time, both parties will establish a joint venture company called "Zero Run International" in a ratio of 51:49, which will conduct export and sales business in all markets except for Greater China, and have exclusive rights to manufacture Zero Run car products locally.
Regarding this cooperation, Tang Weishi said, "Stellantis Group needs to have a certain level of exposure in the Chinese market. We are currently not successful in the Chinese market, so we are very inclined to rely on an excellent Chinese enterprise
With his investment in Leapmotor, Tang Weishi has changed his attitude towards electric vehicles and the export of Chinese electric vehicles to Europe. On the one hand, Tang Weishi openly supports the EU's 2025 new emission regulations, which significantly reduce the average carbon emissions of newly sold cars. On the other hand, Tang Weishi also expressed a negative view on the EU's imposition of tariffs on Chinese made electric vehicles, believing that this decision will accelerate the closure of local car factories in Europe.
The Zero Run C10 and T03 have been launched in 13 European markets since September this year. But Tang Weishi's sudden departure cast a shadow over the future of Stellantis Group and Zero Run International. What changes will be made with the arrival of a successor?