Carlos Tavares, CEO of Stellantis, has stepped down from his position effective immediately, citing “different views” with the board of directors. The automaker, formed through a 2021 merger of Fiat Chrysler Automobiles and PSA Groupe, acknowledged the unexpected departure on Sunday, announcing plans for an interim executive committee led by Chairman John Elkann while a new CEO is sought. A decision is expected by mid-2025. Tavares’ exit follows a September announcement of his planned retirement in 2026.
The resignation comes during a challenging period for Stellantis, the world’s fourth-largest automaker. Despite being lauded for cost-cutting and profitability during its early years, the company has struggled recently with declining U.S. market performance, underwhelming new product investments, and a 27% drop in third-quarter revenues. Tavares’ leadership faced criticism for extreme cost-cutting measures, including workforce reductions of over 47,000 employees since 2019, which some stakeholders blamed for operational inefficiencies and poor financial results.
Unions and U.S. dealerships have criticized Stellantis’ strategy under Tavares, citing production cuts, layoffs, and strained dealership relations amid high vehicle inventories. Despite his significant contributions, including merging Fiat Chrysler and PSA Groupe into a single powerhouse, mounting pressures from unions, lagging sales, and a nearly 43% drop in the company’s U.S.-traded shares in 2024 culminated in his abrupt departure.
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