Tavares Resigns as Stellantis CEO Amid Board Disputes and Sales Decline
Stellantis, the multinational automotive manufacturer known for brands like Chrysler, Jeep, Fiat, and Peugeot, has announced the resignation of CEO Carlos Tavares. This decision comes after ongoing differences with the board of directors, disappointing sales figures, and increasing pressure for his departure. According to a statement from Stellantis senior independent director Henri de Castries, the board and Tavares had "different views," which ultimately led to his resignation. Tavares, who has been a pivotal figure in the company since its formation in 2021, had previously indicated plans to retire at the end of his contract in early 2026. However, the current circumstances have accelerated his exit.
The resignation follows a troubling period for Stellantis, marked by a significant drop in sales and a surplus of unsold vehicles at dealerships. The company has faced layoffs at several plants and has been urged to reconsider its relationship with the United Auto Workers union and a council of its U.S. dealers. In October, Stellantis had already lowered its profit forecast for 2024 due to these declining sales and profits, and the company has confirmed it will maintain this reduced forecast moving forward.
Transition to New Leadership
In light of Tavares' resignation, Stellantis has initiated the process of appointing a new permanent CEO, which is being overseen 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 guide the company through this transitional phase. The automotive industry is closely watching how Stellantis will navigate these challenges and what direction the new leadership will take as it seeks to stabilize its operations and restore consumer confidence.
