Stellantis CEO Carlos Tavares Resigns Amid Declining Sales
Stellantis, the automotive giant behind brands like Jeep, Citroën, and Ram, has announced the immediate resignation of its CEO, Carlos Tavares, after nearly four years in the role. This decision comes as the company grapples with slumping sales and rising criticism. Tavares, who played a pivotal role in the 2021 merger of PSA Peugeot and Fiat Chrysler to form Stellantis, steps down during a tumultuous period for the world’s fourth-largest carmaker.
Under Tavares’ leadership, Stellantis initially thrived, leveraging its diverse portfolio that includes Dodge, Chrysler, Fiat, Peugeot, Maserati, and Opel. However, 2023 and 2024 saw the company struggling in a competitive market. Soaring vehicle prices and a lack of affordable options left many cars languishing on dealer lots, causing a 27% drop in third-quarter revenues compared to the previous year. North America, a key market, reported a staggering 42% revenue decline.
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Tavares faced mounting pressure from multiple fronts. U.S. dealers and the United Auto Workers (UAW) union criticized his management, citing layoffs, delayed factory openings, and strained labor relations. The UAW had recently filed grievances and threatened strikes, while its president, Shawn Fain, welcomed Tavares’ resignation as a “step in the right direction.”
Beyond the U.S., Stellantis also faced scrutiny in Italy over plant relocations and worker protections. In October, Italian lawmakers and autoworkers voiced concerns about job security, further intensifying the challenges for Stellantis’ leadership.
The company’s board has appointed chairman John Elkann to oversee an interim executive committee while searching for a permanent CEO. Elkann expressed gratitude for Tavares’ contributions, particularly his role in creating Stellantis, but noted “different views” had emerged, leading to this decision.
With leadership in flux and an urgent need to reverse its declining fortunes, Stellantis faces a critical moment. Investors, employees, and customers alike are watching closely as the company navigates this pivotal transition.
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