Stellantis CEO Carlos Tavares has stepped down following a disagreement with the group’s board of directors. Effective immediately, the 66-year-old’s resignation caps a rocky year for the world’s fourth-largest carmaker which was marred with falling sales and cost-cutting measures.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board, and the CEO. However, in recent weeks different views have emerged which have resulted in the board and the CEO coming to today’s decision,” explained Stellantis senior independent director Henri de Castries. Company chairman John Elkann thanked Tavares for his “years of dedicated service.”
Executives stopped short of revealing what the disagreement was about, likely to avoid rivaling Netflix in the drama department, but anonymous insiders have already started to talk. “[Tavares] was focusing on the short term rather than the group’s longer-term and managed to anger everybody in the process,” a person reportedly familiar with conversations among the Stellantis board members told The Financial Times.
Tavares planned to retire at the end of his contract in January 2026, so the search for his successor has already started. It’s being accelerated in the wake of his resignation, and the group has formed a Special Committee of the Board to appoint a new CEO during the first half of 2025. In the meantime, an Interim Executive Committee chaired by 48-year-old Elkann (whose great-great-grandfather founded Fiat) will run the group.
The person who replaces Tavares will have his or her work cut out. Stellantis’ share price has dropped by about 41% in 2024 due largely to falling sales, especially in big markets like the United States. The group delivered 305,294 vehicles here during the third quarter of 2024, a 19.8% decline compared to the same period in 2023, and key profit-making brands like Jeep and Ram fell by 6% and 19%, respectively.
Stellantis issued a profit warning in September 2024 and embarked on a cost-cutting campaign. It laid off about 1,100 workers in Michigan, began the process of selling its proving grounds in Arizona, and announced plans to close a Vauxhall plant in the United Kingdom, a move that put over 1,000 jobs at risk. Stellantis dealers across the U.S. are unhappy with the group’s direction, which completes the trifecta of problems.
Born in Lisbon, Portugal, Tavares spent most of his career working for Paris-based Renault. He started as an engineer and rose through the ranks to eventually reach the number-two position, right below then-CEO Carlos Ghosn. He resigned from Renault in 2013 and joined arch-rival PSA Peugeot-Citroën as CEO in 2014. He successfully turned around both brands, masterminded the purchase of Opel from General Motors, and played a significant role in orchestrating the merger between PSA and FCA Automobiles to form Stellantis in 2021. He has run the group since. Often controversial, cost-cutting measures were a key theme of his tenure—a trick at least partially picked up from Ghosn.
Crucially, Tavares didn’t forget about the enthusiast side of the business. He’s a vintage car aficionado whose collection includes a Peugeot 504 V6 Coupé, he regularly participates in the Historic Monte-Carlo Rally, and he passionately helped craft Alpine‘s resurrection while at Renault.
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