France has grown suspicious of Stellantis CEO Carlos Tavares’ compensation, which the government has dubbed irregular and indicative of a need for further financial regulations in Europe. The issue doesn’t appear to have much to do with where the money is coming from, but rather the size of his current payment package.
Tavares oversaw the merger between PSA Group and Fiat Chrysler Automobiles in 2021 while he was still CEO of the former company. Having previously climbed the ranks at Renault, the executive has served as chairman of PSA’s management board since 2014. Now heading Stellantis, Tavares is positioned to receive roughly $20.5 million in compensation for 2021. In addition to that, he’s reportedly eligible for a stock package worth an extra $34.7 million and long-term compensation of about $27.2 million — which the French government believes is too much.
As perviously reported, Fiat Chrysler is currently hard at work, hoping to impress Renault to a point where it will pull the trigger on possible merger. FCA is now in talks with the French government, which owns 15 percent of Renault, hoping it will also find the 50/50 proposal agreeable.
Concessions are already being made. FCA has agreed to France’s request to give the government a seat on an prospective eleven-member board, which also holds four seats for Renault and one for Nissan. Rumors have also suggested that the automaker is considering moving its headquarters to Paris to appease the country.
While France appears to be somewhat receptive, Renault appears to be taking things to the next level. Following a week of discussions with FCA, the company announced it would be taking the rest of the day to give the matter serious consideration.
Carlos Ghosn is pledging to solidify the alliance between Renault, Nissan, and Mitsubishi Motors after agreeing to stay on as the French automaker’s chairman and CEO for the next four years. He also announced the companies will take the next few weeks to develop a plan to “make the alliance irreversible.”
While we’d love to hear about an automotive blood pact or — better still — a strategy to clone Ghosn for the next hundred years, the final plan will probably be a little more mundane. But, according to the chairman’s Friday announcement, it will not include a merger — at least not until the French government gets out of the way.
Nissan has announced a proposal which would end Renault’s control of the Renault-Nissan Alliance, and would curtail interferance by the French government.
When we last left off, Nissan was looking to gain a voice in the alliance it made in 1999 with Renault by increasing its stake while mitigating the stake shared between Renault and Paris. The Japanese automaker has held a 15 percent non-voting stake since alliance CEO Carlos Ghosn turned around its fortunes in the early 2000s, as French law prevents affiliates owning less than 40 percent of a French-led company from voting at the shareholders’ table.
Nissan has other ideas.
In light of fears regarding the three-way deal between Dongfeng, PSA Peugeot Citroen and the French government leading toward a time where Dongfeng would take the reins of the ailing automaker, CEO Zhu Fushou assured his company would not do so.
The PSA Peugeot Citroen-Dongfeng-French government deal agreed upon by the three parties earlier this week received initial backing from the European Union, though skepticism remains as to whether the deal will bring stability to the ailing French automaker.
The founding family behind PSA Peugeot Citroen has approved the 3 billion euro ($4.1 billion USD) deal between the French government and Chinese automaker Dongfeng just an industry analyst penned an open letter for PSA chairman Thierry Peugeot to reconsider before it becomes too late to turn back.
With PSA Peugeot Citroen’s supervisory board’s blessing, CEO Philippe Varin is continuing talks with partner Dongfeng regarding the stock sale to both the Chinese automaker and the French government.
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