It’s an open secret Carlos Tavares wasn’t the most well-loved CEO ever to roam the halls of Auburn Hills – but if a new report is any indication, it is possible he is directly responsible for deep-sixing the venerable 5.7-liter Hemi V8 engine.
According to CNBC, quoting sources inside the company who are choosing to remain anonymous because they’re not supposed to blab about such things, Tavares pushed an agenda of cost-cutting myopia, ignoring the nuances of our market which includes a taste for V8 engines in half-ton pickup trucks.
“Everybody wanted to keep [Hemi],” one source is reported to have said to CNBC. “But it was, ‘You need to be greener’” and any arguments to change the decision were brushed aside. Talk about not being able to read the room.
Sources also allege personality and cultural challenges. Tavares is said to have placed a certain level of “bureaucracy and budgeting over brand” which stands in stark contrast to the way Sergio Marchionne used to run things. Back then, brand heads apparently had more autonomy and trust compared to recent times. Thinking back to a different era of the company, it was often noted that Marchionne always carried something like five cellphones with him, such was the direct line brands and companies had to top brass.
Feathers were also ruffled last summer when Tavares said he was going to spend a few days in North America during his so-called break to fix issues on this side of the pond. In addition to the arrogance that all ailments in this market could be cured by a European alighting on the doorstep of Auburn Hills for a week or so, there is also the spectre of Tavares (who was paid $40 million) talking of such a ‘summer break’ which doesn’t really exist in the States.
There was also apparently grumbling about how North American execs would be expected to attend hours-long calls in the middle of the night, aligning with French time zones before heading to work for a full day of duties. The phrase “smug sense of intellectual supremacy” is also being tossed around, which is never a quality one wants in a leader.
Will things change now that Tim Kuniskis back at the helm of Ram? It’s possible. Kuniskis knows better than anyone what is (and isn’t) needed for success at Ram, bolstered by the fact he tends to revile corporate double speak and prefers to talk about situations in a down-to-earth manner. Talking to Kuniskis is a lot like talking to your uncle who hot rods cars in his spare time, if you’re wondering, and it doesn’t seem like an act.
Think someone in Michigan had the foresight to tuck the industrial stamping for 5.7L Hemi production in a back room until Tavares left? That might be wishful thinking – there is no indication any decisions will be revisited or reversed any time soon – but it does seem the whole company, from corner offices to factories to dealers, are glad Tavares has pulled up stakes and decamped for Europe.
[Image: Stellantis]
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Source: The Truth About Cars
