Carlos Tavares, the CEO of Stellantis, abruptly resigned on Sunday following mounting tensions among the company’s shareholders and leadership. His departure comes just two months after a profit warning that marked a difficult year for the automaker, which oversees brands like Jeep, Fiat, and Peugeot. Stellantis’ shares have plummeted 40% in 2024, reflecting a challenging environment for the world’s fourth-largest automaker by sales.
Leadership Transition and Interim Measures
According to Reuters, the Stellantis board, chaired by John Elkann, has accepted Tavares’ resignation “with immediate effect.” Elkann will lead an interim executive committee while the company seeks a new CEO, a process expected to conclude in the first half of 2025. Senior Independent Director Henri de Castries noted that differing strategic views between Tavares, major shareholders, and the board led to the resignation.
Profit Warning and Operational Struggles
In September, Stellantis issued a profit warning, citing a projected cash burn of up to €10 billion ($10.6 billion) due to sluggish North American sales and high inventory levels. Sales in the U.S. dropped 17% year-over-year in the third quarter, with brands like Dodge, Ram, Jeep, and Chrysler underperforming. Inventory issues were pronounced, with some models, such as the Ram 1500 pickup and Jeep Wagoneer, significantly exceeding average supply levels compared to competitors.
