Analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China.
FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this.
Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first.
“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.
Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era.
But other pressing tasks loom, including reviving the group’s lagging fortunes in China, rationalizing its huge global empire and addressing massive overcapacity.
“It will be a step by step process, also to allow the market better appreciate every single move. I don’t think we will have all the details before one year,” Santino said.
FCA CEO Mike Manley, who will head Stellantis’ key North American operations, has said 40 percent of the carmaker’s expected synergies would come from convergence of platforms and powertrains and from optimizing R&D investments, 35 percent from savings on purchases, and another 7 percent from savings on sales operations and general expenses.
