In a stunning turn of events that has sent shockwaves through the automotive world, Carlos Tavares, the embattled CEO of Stellantis, abruptly resigned from his post on Tuesday. The sudden departure comes amidst mounting tensions with the Italian government over the company’s alleged lack of investment in its Italian operations, particularly the iconic Fiat brand.
Stellantis, formed in 2021 through the merger of Italy’s Fiat Chrysler and France’s PSA Group, has been grappling with slumping sales and profits, particularly in its critical North American and European markets. The company cited “different views” between Tavares and the board as the impetus for the split.
Italy Vows to Protect Jobs Amid Stellantis Turmoil
The shakeup at Stellantis has ignited a political firestorm in Italy, with Prime Minister Giorgia Meloni pledging to do everything in her power to safeguard jobs at Fiat and across the country’s vital automotive supply chain. Speaking to reporters, Meloni emphasized her government’s commitment to defending employment levels in the face of the unfolding crisis.
“We want to do our best to defend employment levels and, in the case of the automotive industry, the supply chain,” Meloni declared.
The prime minister revealed that Stellantis Chairman John Elkann, scion of the Fiat-founding Agnelli family, had personally informed her of Tavares’s resignation. Elkann is slated to meet with Italy’s Minister of Industry Adolfo Urso on December 17 to discuss the situation and potential paths forward.
Salvini Slams Stellantis Management
Italy’s Transport Minister Matteo Salvini pulled no punches in his criticism of Elkann and Stellantis management, expressing his “disgust” at the handling of the situation. Salvini argued that despite taking “money in Italy for decades to open factories abroad,” Stellantis could no longer be considered an Italian company.
“As transport minister, my first thoughts are with the factory workers and their families,” Salvini told Ansa news agency. “We will do everything to safeguard them.”
Tensions Simmer Over Fiat’s Italian Identity
The turmoil at Stellantis has brought long-simmering tensions over Fiat’s Italian identity to a boil. Even before ascending to power, Meloni had opposed the Fiat Chrysler-PSA merger, arguing that it would prioritize French interests over Italian ones.
In recent months, the Meloni government has clashed with Stellantis over perceived slights to Italian pride. In April, officials forced Alfa Romeo to rename its Milano model to “Junior,” insisting that a car produced in Poland could not bear an “Italian-sounding” name. Just a month later, Stellantis was compelled to remove Italian flags from Fiat Topolinos made in Morocco following government pressure.
An Uncertain Future for Italy’s Auto Industry
As the dust settles on Tavares’s shock exit, questions loom large over the future of Fiat and Italy’s automotive sector as a whole. With Stellantis warning of further job cuts and plant closures across Europe, including the planned shuttering of a Vauxhall van factory in the UK, the stakes could not be higher for the Meloni government.
Observers will be closely watching the December 17 meeting between Elkann and Urso for any signs of a rapprochement or concrete commitments to safeguard Italian jobs. But with trust between Stellantis leadership and Italian officials at an all-time low, the road ahead appears treacherous.
For now, the fate of Fiat and the livelihoods of countless Italian workers hang in the balance as this corporate and political drama unfolds. As one of the nation’s most iconic brands faces an existential crisis, the Meloni government finds itself in a high-stakes battle to preserve Italy’s automotive heritage and secure its economic future.
