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Stellantis CEO Carlos Tavares steps down after the world’s fourth-largest automaker’s performance deteriorates sharply, marking the sudden exit of one of the auto industry’s most high-profile leaders. expressed.
Stellantis, which owns the Peugeot, Fiat and Jeep brands, said in a statement on Sunday that its board had accepted Tavares’ resignation, but did not explain the exact reason for his resignation.
Stellantis began searching for Mr. Tavares’ replacement in September, and he was scheduled to complete his term as CEO until early 2026.
Tavares joined France’s Peugeot owner PSA in 2014, saving it from near-bankruptcy and helping grow Stellantis by acquiring Germany-based Opel from General Motors in 2017. This was followed by a 50 billion euro merger with Fiat Chrysler in 2021.
“We would like to thank Carlos for his years of dedicated service and the role he played in the creation of Stellantis,” said John Elkann, chairman of Stellantis.
The company said the process to appoint a new chief executive officer would be completed by the first half of 2025. Until then, a new interim management committee will be established, headed by Elkann.
Henri de Castries, senior independent director of Stellantis, said the company’s success is rooted in the “perfect collaboration” between shareholders, the board of directors and the chief executive officer.
“However, different views have emerged in recent weeks, leading the board and CEO to today’s decision,” he added.
Mr. Tavares and other members of the Stellantis board will be weighing in on how to get the company back on track, after sluggish sales in the U.S. and Europe caused reported profits to fall sharply in 2024, people familiar with Tavares’ resignation said. There is said to be increasing tension between the two. Stellantis stock has fallen 43% this year.
“[Tavares] “They were focused on the short-term view rather than the long-term view of the group, and managed to anger everyone in the process,” said a person familiar with the conversations between Stellantis board members. Ta.
Another person familiar with the deliberations added: “There was a sense that Mr. Carlos was trying too quickly to restore his reputation at the risk of causing problems down the road.”
Stellantis, which has built a strong balance sheet through drastic cost-cutting, issued a profit warning in September. The company said at the time that free cash flow would be between 5 billion euros and 10 billion euros negative in 2024.
Another person briefed on Tavares’ resignation said the situation was tense within Stellantis and with the company’s stakeholders, including U.S. suppliers and dealers.
Disgruntled factory workers in Italy and the United States have threatened strikes after production cuts.
Tavares did not immediately respond to a request for comment. News that he would step down as Stellantis’ chief executive officer was first reported by Bloomberg.
Stellantis on Sunday confirmed its 2024 financial guidance, which includes a target for adjusted operating margin of 5.5% to 7%.
Bernstein analyst Daniel Loeska said Elkann has shown “good instincts” in the past when choosing a new chief executive.
He added: “We expect the board to consider a mix of internal and external candidates, but the interim period will be difficult for the company’s management and investors alike.”
In July, Tavares dismissed concerns about Stellantis’ performance, describing weak sales as a “difficult situation” and vowing to “fix” the problem.
In October, he oversaw a management overhaul of the company’s brands, including Jeep, Maserati and Alfa Romeo.
The change was interpreted by analysts as a sign that Tavares had no intention of resigning before the end of his term.
At the time, he threatened to move some jobs at Stellantis’ Italian factories overseas and clashed with the Italian government over electric vehicle subsidies.
Mr. Tavares came under fire from angry Italian lawmakers, and his response, which he blamed on the harsh regulatory environment, was perceived as lacking in “humility,” a person familiar with the matter said.
Tavares’ resignation comes days after Stellantis announced it would halt production of the Fiat 500 EV and two Maserati models at its historic Mirafiori factory in Turin in December, citing weak demand.
Stellantis last week announced plans to close its van factory in Luton, slamming Britain’s electric vehicle sales rules and putting around 1,100 jobs at risk.
