All Stellantis brands will get a chance; China options open, CEO says

Stellantis will give all its brands -- from Alfa Romeo to Chrysler -- a chance at success and keep all options on the table for revitalizing its struggling Chinese business, CEO Carlos Tavares said.

Tavares said he was "very confident" of delivering his planned 5 billion euros ($6 billion) of synergies, including 80 percent within four years. But while he talked of cost cuts, he also committed not to cut jobs following the merger.

Tavares' comments on Tuesday came as Stellantis shares surged more than 10 percent on their New York debut, mirroring strong increases in its French and Italian listed stocks since their launches on Monday.

"The purpose is not to be big, but to be great at what we do," Tavares said during his first news conference since FCA and PSA completed their merger on Jan. 16.

Tavares said Stellantis' ability to spread costs to invest in new vehicles would be a "shield" against job cuts.

Stellantis's brands will include FCA's Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram, along with PSA's traditionally Europe-focused Peugeot, Citroen, Opel and DS.

Tavares, who was previously PSA's CEO, said all the brands would be given the opportunity "to rebound" and invest in new products as the group focuses on profitable growth.

"All brands and all plants will be given a chance," he said in an interview with German daily FAZ. "Of course, that doesn't mean we don't have to change things, we have to become smarter and more efficient."

Stellantis will launch 10 new electrified vehicle models in 2021, he said.

Tavares said Stellantis did not plan to cut jobs as part of group efforts to cut costs. Asked about possible layoffs, Tavares said: "It's not what we are forecasting."

"What would have been dramatic would have been not to have carried out the merger. Not doing it would no doubt have put both sides in a very difficult situation in order to cope with the extra costs linked to new regulations," Tavares said.

Tavares told Italian daily La Repubblica the aim was to reach full capacity at all the group's production facilities. "It will take time, but we can do so as we are able to work on a plurality of choices," he said.

When asked about the future of the group's plant in Ellesmere Port, England, and whether Stellantis would invest in electric vehicles there following the conclusion of a Brexit trade deal, Tavares said: "We are now reviewing those different scenarios."

Tavares also said he had created a task force to find out "what went wrong" for Fiat Chrysler and PSA in China, where each company has had weak sales.

The task force, consisting of Stellantis' top five executives, is tasked with finding solutions for a comeback in world's largest market, Tavares said.

When asked if options could include finding a new local partner, Tavares said the company "would not exclude anything."