Business
Stellantis boss abruptly quits in boardroom clash
The boss of car-making giant Stellantis, Carlos Tavares, has quit with immediate effect following a boardroom clash.
His abrupt exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – comes two months after Stellantis issued a profit warning.
Last week, the firm also announced plans to close its Vauxhall van-making factory in Luton, putting about 1,100 jobs at risk.
Before his resignation, Mr Tavares was one of the most powerful people in the global motor industry.
In a statement announcing Mr Tavares’ departure, Henri de Castries, Stellantis’ senior independent director said: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the chief executive.
“However, in recent weeks different views have emerged which have resulted in the board and the chief executive coming to today’s decision.”
Mr Tavares had a reputation as a ruthless cost-cutter.
He made his name at Renault, working with the colourful and controversial chief executive, Carlos Ghosn, before taking the top job at PSA Group.
At the time, the French group was close to bankruptcy. He was credited with turning it around before orchestrating a merger with Fiat Chrysler to form Stellantis in 2021, creating a global giant.
“He was known for being able to turn around companies that were troubled,” Hans Greimel, Asia editor at Automotive News, told the BBC.
However, Mr Tavares’ position has been undermined recently by a dramatic fall in sales and profits at the company.
“Critics would say he was just cost-cutting too much and delaying products and also hurting quality,” said Mr Greimel.
In September, Stellantis had issued a profit warning after it reported a sharp drop in sales in North America.
Dealers found themselves struggling to shift a glut of unsold vehicles, which customers simply didn’t want to buy.
The company was criticised for producing too many cars of the wrong type, failing to adapt to changing customer tastes and losing ground to more dynamic rivals.
Prof David Bailey from the Birmingham Business School, told the BBC’s Today programme that while there is “huge turmoil in the car industry generally” Stellantis has its own “particular problems”.
He said: “What’s really, really driving that, I think, is the situation in North America where they’ve had appalling results, a very dated product line-up, rising inventories and slipping market share as a result of which all the stakeholders involved – suppliers, dealers, workers, investors – are deeply unhappy.
“I think that has penetrated the board and made his position untenable.”
Business
The French winemaker whose wines are illegal in his home country
Winemaker Maxime Chapoutier would be arrested if he tried to sell two of his newest wines in his native France.
“There would likely be outrage about these wines in France, and that would be a good thing,” he says. “Sometimes you need to be provocative to drive change.”
The two bottles in question, one white and one red, would be illegal in France because they are made from a blend of French and Australian base wines.
Under both French and European Union law it is forbidden to make a wine that combines EU and non-EU fruit. In France in particular, authorities take such things very seriously.
The French wine industry has a celebrated word called “terroir”, which applies to all the environmental factors that affect vines growing in a vineyard, such the soil, the climate, and the elevation. As a result, wines from a specific place are held in the highest esteem.
Add a strict appellation or classification system for France’s wine regions, and the thought of blending French and Australian wine to create a global hybrid would horrify many French wine lovers.
Yet Maxime has done just this, and it is all thanks to one word – Brexit.
For while he cannot sell the two wines in the EU, he can do so in the UK now that London no longer has to follow food and drink rules set by Brussels.
Business
Musk, MrBeast, Larry Ellison – Who might buy TikTok?
Jimmy Donaldson – aka MrBeast – was jubilant as he told his tens of millions of TikTok followers about his bid to buy the platform.
“I might become you guys’ new CEO! I’m super excited!” Donaldson said from a private jet. He then proceeded to promise $10,000 to five random new followers.
The internet creator’s post has been viewed more than 73 million times since Monday. Donaldson said he could not share details about his bid, but promised: “Just know, it’s gonna be crazy.”
Donaldson is one of multiple suitors who have expressed interest in purchasing TikTok, the wildly popular social media platform that’s become the subject of a fast-moving political drama in the United States.
Last year, then-President Joe Biden signed a law that gave TikTok’s China-based parent company ByteDance until 19 January to sell the platform or face a ban in the United States.
Business
UnitedHealthcare names new boss after former CEO killed
UnitedHealthcare has named a new boss almost two months after its then-chief executive Brian Thompson was shot and killed in New York.
Company veteran Tim Noel will take charge of the largest health insurer in the US, which has more than 50 million customers, at a critical moment.
Mr Thompson’s killing on 4 December in central Manhattan ignited a wide debate about how the US healthcare system operates.
Many Americans, who pay more for healthcare than people in any other country, have expressed anger over what they see as unfair treatment by insurance firms.
Mr Noel “brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners,” UnitedHealthcare’s parent company UnitedHealth Group said.
A manhunt ensued for days as police worked to identify who was responsible in the December killing, which happened outside a Manhattan hotel where the CEO was staying.
After five days, Luigi Mangione, 26, was arrested in a McDonald’s restaurant in Pennsylvania after a worker called police.
Mr Mangione has pleaded not guilty to charges in the killing. He is facing 11 state criminal counts, including murder as an act of terrorism.
As well as the state-level charges, he is also accused of federal – national-level – stalking and murder offences that could lead to a death penalty sentence.
Prosecutors allege that Mr Mangione shot Mr Thompson before going on the run.
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