I feel now-former Stellantis CEO Carlos Tavares was an fascinating determine for simply how unpopular he was. Certain, only a few high executives get to the place they’re by making pals in all places they go. However Tavrares was considerably distinctive in how a lot he managed to make everybody mad at him; the staff, the unions, the board members, the suppliers and the purchasers are all most likely thrilled to see him go. That is nearly a expertise in and of itself.
However Tavares was additionally the chief architect behind Stellantis, the weird conglomerate fashioned in a merger of Fiat Chrysler with France’s Groupe PSA. What that firm and its 14 automobile manufacturers even are with out him is an open query, and it comes proper forward of a vital yr on many fronts—together with the electrical one.
That kicks off the primary Essential Supplies information roundup of December 2024. We at InsideEVs hope you had a stunning Thanksgiving, should you noticed it. Additionally on immediately’s docket: a Mercedes-Benz EV fireplace forces some huge modifications in South Korea, and might President-elect Donald Trump “open up” China’s EV sector?
30%: Tavares Out At Stellantis. Now What?
Picture by: Stellantis
Carlos Tavares, Stellantis CEO
It is arduous to consider this, however we’re not even 4 full years into the existence of the entity that’s Stellantis, the cross-Atlantic holding firm that owns Jeep, Dodge, Ram, Alfa Romeo, Peugeot, Opel, Fiat and a bunch of different manufacturers. That is numerous mouths to feed; I am not even positive it may be finished. However now Tavares, the previous CEO of the PSA Group, is totally out even earlier than his deliberate early 2026 retirement.
Stellantis was fashioned on the concept the automobile trade was going through a profound transformation the one option to survive it’s by scale: combining the assets of those many manufacturers to maintain prices down and drive investments sooner or later. And perhaps issues would have gone in a different way if COVID-19 hadn’t blown up the automotive provide chain and raised automobile costs, although Tavares’ management is completely responsible of taking that and working with it.
In the long run, Tavares’ tenure was doomed on two fronts. He was coping with the European auto disaster on his residence turf—falling gross sales, elevated competitors from Chinese language automobile manufacturers and waning EV curiosity as subsidies vanished—and plummeting income within the profitable North American market as folks stopped shopping for these newly ultra-expensive Jeeps and Ram vans. This facet of the Atlantic paid greater than half Stellantis’ payments however Tavares’ staff was roundly accused of jacking up costs and ravenous Jeep and others of latest merchandise to gasoline a renaissance for sure European manufacturers like Alfa Romeo, which did not work out, both. Now it is going through existential issues like plant closures, livid sellers and an unclear technique for what’s subsequent. Income had been down almost 50% this yr as 2024 was set to be a form of complete write-off.
The factor is—and do not take this as a protection of Tavares, as a result of I’ve no real interest in setting up one—some constructive modifications had been starting to take form. Jeep has a brand new CEO who’s working to make its costs much less unhinged and get new fashions on the highway, and Stellantis is beginning to present some actual promise on the EV entrance after years of lagging behind. However ultimately, it wasn’t sufficient to save lots of Tavares and he most likely did not deserve it anyway.
So now what? For one, there’s the matter of succession. However as The Detroit Information identified, Stellantis has a fairly skinny bench as of late; it witnessed an enormous government expertise drain beneath Tavares and will likely be run by a committee within the interim, not an appearing CEO. And Stellantis has an enormous yr forward: it is purported to launch the Dodge Charger EV, the electrical Jeep Wagoneer S, the Ram 1500 Rev and Ramcharger EREV and extra subsequent yr. That is simply on the North American entrance; extra are coming in Europe too. There are new EVs coming from Fiat, Peugeot, that take care of China’s Leapmotor… so much is happening proper now.
From the Information:
In North America, the place income fell 42% within the third quarter and shipments had been off 36%, it seems Stellantis has a “respectable plan” for a turnaround, stated Stephanie Brinley, principal automotive analyst at S&P International Inc.
“It is a matter of letting it play out,” she stated. “They had been making progress on adjusting pricing. They’re making progress on not simply making issues cheaper, however making an attempt to provide you with a option to repackage and develop merchandise which can be giving shoppers the precise worth.”
Subsequent yr, Stellantis wants to maneuver ahead with the a number of merchandise it is launching — together with high-profile EV choices — and guarantee these launches go as easily as potential, she stated: “It will be an enormous yr for them, and they should have it go as easily as potential, and meaning having the ability to deal with no matter surprising points come up in addition to potential.”
Good luck to whoever leads to that job. They’ll want it.
60%: Korea’s Mercedes Fireplace Sparks New EV Rules
This is the factor about lithium-ion battery fires: they’re statistically much more uncommon than inside combustion autos, however far nastier to place out after they do occur. That is particularly unhealthy information in South Korea, a rustic with huge EV ambitions however the place most city folks dwell in high-rise towers. One Mercedes-Benz EV fireplace earlier this yr (adopted by one other involving a Kia) has the nation spooked about what may occur if these automobiles are parked underground. That Mercedes fireplace alone despatched dozens of tower residents to the hospital and left 200 households briefly homeless.
So now, in keeping with Bloomberg, South Korea is making modifications that the remainder of the world ought to contemplate adopting:
The brand new set of laws included mandating automakers disclose the manufacturers of their batteries, increasing the scope of security inspections for current EVs and stopping autos from being absolutely charged.
The federal government has additionally immediately stepped in to make sure the security of batteries through a state-run certification system. The pilot mission has been working since mid-October with 5 firms, together with carmakers Hyundai Motor Co. and Kia Corp. in addition to cell producer LG Power Answer Ltd., collaborating.
[…] Earlier than the initiative, EVs had been bought in South Korea with none third-party security assessments. Beneath the brand new system, state-run businesses just like the Korea Car Testing & Analysis Institute will put batteries by their paces earlier than set up, guaranteeing they meet government-backed security certification requirements.
Korea planted its flag early within the EV house and as of late, it looks like each fourth or fifth automobile in Seoul is an electrical Hyundai or Kia. The nation does not wish to again down in any case these investments, so these must be seen as constructive strikes:
The Mercedes-Benz blaze was undoubtedly an unlucky occasion, however it solid a much-needed highlight on the difficulty and sparked requires stricter laws. In the end, it may function a wake-up name for South Korea to create a safer, extra supportive surroundings for battery-powered automobiles.
This is hoping.
90%: Can Trump Strike A ‘Deal’ With China’s EV Makers?
In the meantime, again within the U.S., the auto trade and consumers like are on pins and needles as they wait to see if incoming President Donald Trump will actually act to kill the EV tax credit score or if he is inclined to search out a way ahead that will not threaten manufacturing jobs in purple and crimson states. However there’s additionally the query of China’s automakers—at present stored out of the U.S. by tariffs and software program restrictions—and what function they may play domestically. Trump has stated up to now that he’d quite they construct automobiles within the U.S. than abroad: “In the event that they wish to construct a plant in Michigan, in Ohio, in South Carolina, they will, utilizing American employees,” he stated in March.
That is undoubtedly a scary proposition should you’re Ford, or Basic Motors, or Volkswagen, or heck, even Tesla. However Steve LeVine at The Info (subscription required) proposes that Chinese language EVs may come stateside as a part of a broader commerce take care of the nation:
But there may be purpose to count on that Trump—after beginning with maximal threats, like a 60% tariff he has vowed to impose on all Chinese language items—will favor a grand commerce cut price wherein the institution of Chinese language EV and battery factories within the U.S. could be a central function. In alternate for that and different sweeteners to decrease the U.S.-China commerce imbalance, Beijing would search lowered tariffs.
The explanation: Trump, whereas unpredictable and susceptible to reversing course, would rightly view the potential for billions of {dollars} in funding, 1000’s of jobs and an unbelievable diplomatic breakthrough as a dealmaking coup that might burnish his legacy. For his half, President Xi Jinping “needs Chinese language firms to dominate world markets in EVs and batteries,” stated Ian Bremmer, president of geopolitical danger consultancy Eurasia Group. “Name it the Japanese mannequin of the ’80s and ’90s. International domination requires a world presence.”
So may this really work out for the U.S.? By way of upping its battery recreation, which badly must occur, the reply might be sure:
[…] the U.S. may unroll a welcome mat to Chinese language factories a win so long as an organization like BYD, China’s largest EV producer, sourced most of its components and supplies from North America and shared its technical information along with his American staff. “I feel it’s within the pursuits of the U.S. to onshore the dominant Chinese language EV maker,” he stated. “An funding like this helps the build-out of an onshore EV ecosystem from essential minerals manufacturing and recycling to battery manufacturing and charging community improvement.”
However then once more:
Now Trump has invited Chinese language EV makers into the U.S., and a part of that cut price would probably be that they share what they know with American rivals. “In an entire function reversal from the ’00s, when overseas [automakers] wishing to entry the rising Chinese language market had been involved about pressured tech switch, it’s now Beijing liable to inadvertently undermining its firms in worldwide markets by serving to rivals catch up,” stated Bremmer, the Eurasia Group president.
The deal is more likely to be solely the start: CATL, Byd and different Chinese language firms make many of the world’s LFP batteries, and U.S. LFP startups haven’t even begun to fabricate them. Relying on the association Trump presents, CATL appears more likely to search different enterprise within the U.S.—and to get a heat welcome from automakers in search of the most affordable and at present one of the best batteries. “America doesn’t have [LFP] specialists,” a CATL engineer stated. “The Chinese language trade will help construct that native expertise pool.”
That story’s price a learn in full. However Tesla CEO Elon Musk and Massive Oil even have Trump’s ear greater than most, so it is also arduous to fathom he’ll develop into deeply involved in aggressive battery expertise hastily.
100%: Who Would You Choose To Lead Stellantis?
Ralph Gilles Stellantis Jeep Wagoneer S
I’ve all the time been a fan of Ralph Gilles, the Chrysler-Fiat Chrysler-SRT-Stellantis design guru who’s as accountable as anybody for America’s Twenty first-century muscle automobile renaissance (and will get the place the EV market goes.) He is a sensible man. However he could also be too sensible to wish to tackle that many manufacturers.
Who ought to get the highest spot at Stellantis subsequent, and what should they do to proper the ship?
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