Carlos Tavares’ mandate at the helm of Stellantis expires in the spring of 2026, and there is room for further “consolidation” operations, according to his definition. In other words, another merger/acquisition by a group that already has 14 brands in its portfolio, but might want more. Tavares does not explicitly mention Renault (a marriage that the French government of Macron is reportedly considering, according to financial sources) or any other car manufacturer, but in a recent interview with Bloomberg, he was careful not to rule out any possibility, from Paris to Detroit. This was enough to fuel scenarios that may not be imminent, certainly not easy to achieve, but are based on real reasons.
“If the automotive industry does not move, it is destined to disappear under the Chinese offensive. Those who do not do their homework on cost reduction will end up in ruin.” On February 15th, Stellantis will release the financial results for 2023, the year that saw the group’s American brands (Dodge, Ram, Jeep, and Chrysler) surpass the value of Ford and General Motors on Wall Street. In fact, when asked if he is considering a merger with one of the two, Tavares is open to the possibility: “The only prerequisite is that the operation benefits all, and that it is done in a friendly manner.”
Stellantis’ “Dare Forward 2030” plan presented in March 2022 needs to be reassessed in light of the Chinese wave in Europe. Tavares could take advantage of the group’s strong cash position since the start of the venture in 2021. “The group’s mountain of cash offers him a certain comfort and some options,” said HSBC analyst Michael Tyndall to the economic daily Les Echos, evaluating Stellantis’ net cash at 26.5 billion euros at the end of 2023. This is also why the CEO of Stellantis can say, “If you see that my figures are at an adequate level, you can conclude that I am in favor of any kind of consolidation.”
The approval of the Brussels antitrust remains to be convinced, as years ago it rejected the Alstom-Siemens merger, but — times have changed — it could give the green light based on anti-Chinese considerations. The French government repeats “no comment” and a spokesperson for Stellantis Italy also says, “We do not comment on unfounded speculations.” However, Tavares himself is turning his attention to Renault, as he mentions following with curiosity the moves of the French rival company, not hiding his reservations about the choice of Italian CEO Luca de Meo to separate activities into the two divisions: Horse (internal combustion engines) and Ampere (electric cars and software). Last Monday, Ampere was supposed to be listed on the stock market, but Renault backed out at the last moment.
Tavares is observing, and by his own admission, he is ready.