Stellantis CEO Carlos Tavares resigns due to declining sales

Carlos Tavares, CEO of Stellantis, resigned on Sunday, the company said. File photo by Ian Langsdon/EPA-EFE

“Our thanks go to Carlos for his years of dedicated service and the role he played in the founding of Stellantis,” Stellantis Chairman John Elkann said in a statement.

“I look forward to working with our new Interim Executive Committee, supported by all of our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued implementation of the corporate strategy in the long-term interests of Stellantis and all its stakeholders.”

Tavares resigned following recent disagreements with Stellantis’ board, a situation highlighted by senior independent director Henri de Castries, who said on Sunday that the company’s success was “based on a perfect alignment” between shareholders, the board and the CEO based on.

“However, in recent weeks, different views have emerged that have led the board and CEO to reach today’s decision,” Castries said.

The announcement follows a difficult year for Stellantis, which saw its share price fall more than 50%, from a high of around $29 in March to $13.20 on Friday, The New York Times reported.

Third-quarter results released in late October showed net sales of about $34.7 billion, down 27% from the same period last year, due to lower shipments and other issues.

According to the statement, the company shipped 20% fewer units year-over-year.

Tavares, 66, was a central figure in the creation of Stellantis, the fourth-largest automaker, in January 2021 through the merger of Fiat Chrysler and Peugeot.

Following the announcement of Tavares’ resignation, the United Auto Workers union said in a statement to CNN that it viewed the move as “a major step in the right direction for a company that has been mismanaged and a workforce that has also been mistreated.” “greet”. long.

“We are pleased that the company is responding to the pressure and correcting its course,” it said.