On Sunday, Stellantis NV announced the immediate resignation of its CEO, Carlos Tavares, effective immediately. The successor to Tavares, one of the most respected figures in the automotive industry, has not yet been identified.
Stellantis, founded in 2021, is a multi-branded automotive manufacturer that produces vehicles under brands such as Alfa Romeo, Citroën, Peugeot, Opel, and Maserati. The company’s future direction and leadership will be closely watched as it navigates these challenging times.
The decision to accept Tavares’ resignation was attributed to “difference in positions” between the CEO and the board of directors, as stated by board member Henri de Castries. This development follows a period of significant challenges for the company, including a profit warning issued by Tavares in September regarding the 2024 results. The warning was accompanied by a sharp decline in sales, which has been a persistent issue for Stellantis this year.
Tavares had initially planned to retire at the end of his current mandate in early 2026, having announced that he would not seek a new term as CEO. However, his departure has been accelerated due to the ongoing struggles within the company. Since its formation in early 2021 through the merger of Fiat Chrysler and Peugeot owner PSA, Tavares has led Stellantis, but the company’s shares have plummeted by about 40 percent in value this year.
Tavares’ tenure was marked by his outspoken style, which often led to conflicts, including with American trade unions and the Italian government. Italy, in particular, had expressed dissatisfaction with Tavares’ decisions to reduce car production in the country.
The process of appointing a new CEO is currently underway, with the company aiming to complete this transition in the first half of 2025. In the interim, a new committee will be established to manage the company’s operations.
