Stellantis CEO Carlos Tavares Resigns Amid Board Disputes and Sales Decline
Stellantis, the multinational automotive manufacturer known for brands such as Chrysler, Jeep, Fiat, and Peugeot, announced on December 1, 2024, that CEO Carlos Tavares has resigned from his position. This decision comes in the wake of significant differences between Tavares and the company's board of directors, as well as disappointing sales figures and increasing pressure for his departure.
Tavares, who has been instrumental in the merger of PSA Group and Fiat Chrysler to form Stellantis in 2021, faced mounting challenges, including a surplus of unsold vehicles at dealerships and layoffs at various plants. The company has also been under scrutiny for its relationship with the United Auto Workers union and a council of U.S. dealers. According to Stellantis senior independent director Henri de Castries, the board and Tavares held “different views,” which ultimately led to his resignation.
In light of Tavares' departure, Stellantis is in the process of appointing a new permanent CEO, with the selection managed by a Special Committee of the Board. This process is expected to conclude in the first half of 2025. Until a new CEO is appointed, John Elkann will chair an Interim Executive Committee to oversee the company's operations.
Tavares, 66, had previously announced plans to retire at the end of his contract in early 2026. His resignation follows a period of declining profits, prompting Stellantis to lower its profit forecast for 2024. As the automotive industry continues to face challenges, the future leadership of Stellantis will be crucial in navigating these turbulent times.
