Carlos Tavares has stepped down as CEO of Stellantis, effective immediately. The company will now operate under an executive committee led by Chairman John Elkann until a new CEO is appointed, which is anticipated to occur in the first half of 2025.
This resignation marks a surprising turn considering Tavares had previously indicated plans to retire at the end of his contract in 2026. According to an official statement from the company, tensions had escalated among major shareholders and the board regarding the direction Tavares was taking, ultimately leading to his resignation.
Tavares has been a pivotal figure in the automotive industry, having been the first CEO of Stellantis following its formation from the merger between Fiat Chrysler Automobiles and Groupe PSA in 2021. His tenure at PSA included key decisions such as the acquisition of Opel and Vauxhall from General Motors in 2017. However, Stellantis has faced challenges, including a 17 percent decline in global sales across its six brands through the third quarter of 2024.
In response to these challenges, Tavares had proposed potentially discontinuing underperforming brands like Alfa Romeo and Fiat in North America. However, this approach was met with disapproval from the board, who felt he was prioritizing immediate fixes over the long-term sustainability of the company.
The unexpected leadership change presents an opportunity for Stellantis to reassess its strategy and direction. The new interim committee will have the chance to explore innovative solutions that could revitalize the company’s sales and overall market presence moving forward.
Overall, while this may be a challenging moment for Stellantis, it also opens the door to fresh perspectives and strategic decisions that could lead to a brighter future for the company and its brands.