Crisis at Automaker Stellantis: Will this be the End of an Incredible Journey?

Case Code: BSTR690
Case Length: 14 Pages
Period: 2021 - 2024
Pub Date: 2025
Teaching Note: Available

Price: Rs.400
Organization : Stellantis
Industry : Automotive
Countries : Netherlands
Themes: Brand Revival, Competitive Strategy, Corporate Strategy,General Management and Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Fall of The Auto Major

In 2022, the US Department of Justice (DoJ) resolved a multi-year diesel emissions fraud investigation against the FCA unit, a part of Stellantis. The DoJ imposed a huge fine of $300 million on Stellantis for manipulating emission data (in 2022), which acted against its environmental responsibility strategy. The company also came under huge pressure due to the stringent emission standards and delayed launch of its EV..

Mixed Reaction to CEO Exit

After Tavares’s exit, many industry experts, employees, and union representatives expressed relief citing the tense relationship of the company with its various stakeholders under his reign. According to Jan Griffiths (Griffiths), an automotive industry expert and founder of Gravitas Detroit..

Elkann Takes Charge

After the resignation of Tavares, Elkann took charge as the chairman of an interim executive committee. According to Stellantis officials, the board members were looking for a new CEO and it was expected that the name would be announced by the first half of 2025. Meanwhile, the company began reorienting its strategy under Elkann’s leadership. Stellantis was aiming to mend its relationships with..

What lies ahead?

The leadership change in Stellantis was welcomed by the financial market. Commenting on the future plan of the company, Elkann said, “I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO.

Exhibits

Exhibit I: Global Market Value of Carmakers, by Market Capitalization
Exhibit II: Consolidated Shipments of Stellantis
Exhibit III: Report on UAW President Shawn Fain’s Narration against Stellantis
Exhibit IV: Financial Metrics of Stellantis, June 30th 2023 vs June 30th 2024 (First Six Months)

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