Stellantis CEO Tavares resigns

Stellantis boss Carlos Tavares has resigned amid reports of disagreements over the carmaker’s strategy.

In October, the company presented an exit plan for its CEO, which called for him to retire at the end of his term as CEO in early 2026. However, the company said in a statement that the board had accepted his resignation with immediate effect.

Last month, Stellantis reported third-quarter deliveries to dealers, importers and fleets before retail and revenue recognition fell by a fifth, following a particularly sharp decline in North America, where the company said it would take corrective measures to reduce the to take inventory.

The company also cut its 2024 profit outlook due to higher costs in the US market. Stellantis stock has slumped this year, contrasting with the performance of Detroit rivals Ford and General Motors.

Stellantis said the process to appoint a new CEO is “well underway, will be managed by a special committee of the board and will be completed in the first half of 2025.” Until then, a new interim executive committee will be established under the chairmanship of John Elkann.

Tensions reportedly rose as the board perceived CEO Tavares to be focused on short-term solutions rather than a long-term strategy, leading to his sudden resignation.

Analysts and shareholders called for new leadership, and Tavares, known for clashes with U.S. unions and the Italian government, faced criticism over production cuts and union contract problems.

UAW President Shawn Fain criticized Tavares for leaving behind “a pile of painful layoffs and overpriced vehicles sitting in dealer lots.”

Remarks from Henri de Castries, senior independent director of Stellantis, suggested internal disagreements between major investors and the CEO. He said: “The success of Stellantis since its inception has been based on the perfect alignment between the reference shareholders, the Board of Directors and the CEO. However, in recent weeks, different views have emerged that have led the Board and CEO to reach today’s decision.”

Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he played in the founding of Stellantis, in addition to the previous turnarounds of PSA and Opel that set us on the path to becoming a world leader “to become a company” in our industry.

“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.”

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