Stellantis CEO Carlos Tavares Resigns Amid Sales, Profit Struggles
After a successful early run, Stellantis has struggled mightily as of late, prompting a somewhat surprising changing of the guard.
While the entire automotive world has entered a difficult period as of late – with big investments in electrification thus far failing to pay off, not to mention regulatory uncertainties and slumping sales in certain parts of the globe – perhaps none has experienced quite as much financial pain as Stellantis. In recent months, swelling inventory levels, weak sales, and declining profits have placed Stellantis CEO Carlos Tavares squarely in the proverbial crosshairs, but the executive remained adamant that he would not only right the ship, but also, stick around in his role until his current contract expired in 2026. Now, somewhat surprisingly, Stellantis has announced that Tavares will resign early, effective immediately.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” Stellantis Senior Independent Director, Henri de Castries, said in a recent press statement. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.” Thus, the two sides have decided to go in a different direction, with the search for a new CEO reportedly “well underway.” Meanwhile, a new executive committee led by John Elkann, the chairman of the Stellantis board, will run the company until a replacement is found.
Tavares spearheaded efforts to create what is now known as Stellantis back in 2021 when Fiat Chrysler Automobiles and Peugeot merged, creating what is one of the largest automobile manufacturers on earth that encompasses more than a dozen brands, though many of them have underperformed as of late, spurring rumors that at least one could be axed. Regardless, Stellantis performed quite well early on, posting record profits in 2023 and announcing ambitious EV expansion plans along the way, but things have taken quite the nose dive in 2024 thus far.
Both profit and sales have taken big hits this year – particularly in the U.S. – and Stellantis hasn’t responded by rolling out incentives in an effort to quell soaring inventory levels like many of its peers, which remain among the highest in the industry. Since then, the automaker has slashed output, laid off workers, idled production at one plant in Illinois, and announced that it plans to close another in the UK. Meanwhile, a group of U.S.-based dealers penned a letter to Tavares earlier this year, claiming that his “reckless short-term decision making to secure record profits in 2023 has had devastating, yet entirely predictable, consequences in the U.S. market.”
“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry,” Elkann said, in a recent press statement. “I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
Photos: Stellantis
Join the Dodge Forums now!
You must be logged in to post a comment.