Opel confident on electric strategy amid Stellantis leadership turmoil

By Gilles Guillaume

PARIS (Reuters) - Opel will continue its role as the electric vehicle pioneer for Stellantis (NYSE:STLA ) despite the sudden departure of CEO Carlos Tavares, the German brand's CEO told Reuters on Thursday.

WHY IT'S IMPORTANT

Stellantis, the world's fourth-largest automaker, has been plunged into uncertainty this week with the abrupt resignation of Tavares due to disagreements over the company's turnaround strategy following a hefty profit warning.

KEY QUOTES

"Opel has a very clear path towards electrification, and the organization will not change these fundamental choices," said Florian Huettl, CEO of Opel, adding:

"In 2025, which will be the next stage of electrification, it will be very important to be very agile, very close to the market, and very close to operations."

CONTEXT

The group has put in place an interim leadership structure, with a streamlined executive committee chaired by John Elkann, until a successor to Tavares is chosen.

The leadership vacuum comes at a critical time for Stellantis, which faces challenges including overcapacity and bloated inventory in the U.S., sluggish global car demand, and intensifying competition from Chinese rivals.

WHAT'S NEXT



Opel currently offers a mix of conventional combustion cars and electrified models, but pledged to fully pivot to a pure electric lineup in its next product cycle.

Opel's all-new Grandland SUV, the first Stellantis electric model with a battery manufactured at ACC (NS:ACC )'s French gigafactory, is due to go on sale in the first quarter of next year.

Source: Investing.com