Carlos Tavares has stepped down from his role as CEO of global automaker Stellantis, the company announced Sunday, marking an abrupt end to his tenure at the helm of the fourth-largest automaker in the world, which counts Jeep, Ram, Chrysler, Dodge, and Fiat among its brands. Tavares' resignation is effective immediately, as confirmed by WWJ Newsradio.
It was noted that Tavares had been under increasing scrutiny from various stakeholders, including unions and shareholders. Despite being expected to retire at the end of 2025 or early 2026, his early departure will now quickly expedite a search for a new CEO, which the company states is managed by a Special Committee of the Board and is aimed to be completed by June 2025. The formidable task of filling the leadership vacuum comes amid a slump in sales and reported discontent among employees and suppliers.
Stellantis' sales figures have taken a significant hit, with the automaker posting a 27% drop in net revenue for the third quarter of this year, down to $36 billion from $45 billion during the same period in 2023. The company's Senior Independent Director, Henri de Castries, cited "different views" as the reason for the board and Tavares's decision for his resignation, as cited by CBS Detroit's website.
Looking forward, Stellantis Chairman John Elkann will lead an interim executive team until a permanent CEO takes office. Elkann expressed his thanks to Tavares for his service and the role he played in the creation of Stellantis, acknowledging his prior accomplishments with PSA and Opel. "I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO," Elkann said, as per WWJ Newsradio.
The company's woes have been multifaceted, with job cuts and shifts in the U.S. operations adding to the internal stresses. The United Auto Workers (UAW) President Shawn Fain, was quoted directly celebrating the resignation, attributing the move to "reckless mismanagement" by Tavares. Fain's further comments on the matter were reported by the Detroit Free Press, as he hinted at future negotiations with new leadership, emphasizing the need for investment in U.S. production.
