The CEO of Stellantis suddenly resigned due to disagreements with the board
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Stellantis CEO Carlos Tavares abruptly resigned on Sunday after four years at the helm of the company due to disagreements with the board.
The company said the board of directors accepted Tavares’ resignation immediately. The company, which owns brands such as Chrysler, Jeep, Fiat and Peugeot, said the search for Tavares’ replacement is “progressing well” and is expected to be completed in the first half of the new year.
Meanwhile, an interim executive committee led by John Elkann will be established.
“The success of Stellantis since its inception is based on good planning between the reference shareholders, the Board and the CEO. However, in the past weeks different opinions have emerged which led the Board and the CEO to reach today’s decision,” it said. Henri de Castries, chief independent director of Stellantis.
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Stellantis CEO Carlos Tavares speaks during a news conference at the Fiat car manufacturing plant in Kragujevac, Serbia, on July 22, 2024. (Oliver Bunic/Bloomberg via Getty Images/Getty Images)
Despite their disagreements, Chairman John Elkann thanked Tavares for his role in helping Stellantis become a “world leader” in the industry. Tavares took over as Fiat Chrysler and Peugeot owner PSA merged into Stellantis in early 2021. Prior to that, he worked as an executive at the international car manufacturing company Renault.
But his dismissal comes amid a difficult time for the carmaker. In September, the company issued a profit warning for its 2024 results after poor sales in North America. Stellantis said the global industry environment has worsened, leading to a lower market forecast for 2024 compared to previous forecasts. At the same time, competition has become difficult due to the supply of the industry and strong competition from China.
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To try to fix things, Stellantis said last month it was permanently laying off more than 1,000 workers at its Jeep. assembly plant in Ohio as it focuses on “restructuring its US operations to ensure a strong start to 2025.”
French President Emmanuel Macron speaks with Stellantis CEO Carlos Tavares and Stellantis chairman John Elkann as they sit in a Peugeot Inception car as they visit the Paris Motor Show at the Paris Expo Porte de Versailles in Paris on October 1 (LUDOVIC MARIN/POOL/AFP via Getty Images)
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The company noted in its third-quarter report, after seeing a 27% drop in revenue compared to the same period in 2023, that it was in the midst of a reduction in North American inventory and that the level of inventory of US retailers “was very important. .”
Reuters contributed to this report.
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