A few minutes ago, Carlos Tavares resigned as CEO of Stellantis. The Portuguese manager submitted his resignation, and the board of directors accepted it, according to Bloomberg. The poor results recorded in the American market likely weighed on this decision, where profits suffered a significant collapse and US sales weakened month after month. Carlos Tavares had taken the helm of the newly formed Stellantis in 2021, resulting from a merger between FCA and PSA: things didn’t go as planned in the most optimistic forecasts. Due to profit warnings, shareholders were very concerned. It’s also unclear whether they truly believe in the investment in Chinese automaker Leapmotor.
Stellantis: CEO Carlos Tavares resigns with immediate effect
Tavares leaves when Stellantis is in crisis in almost every market where it operates: specifically, the third quarter of the year was tragic, with a 27% drop in revenue. Sales stopped at 1.148 million vehicles, down by 279,000 units, a 20% decrease compared to the previous year. The fortune that had always accompanied him throughout his career had brutally turned its back on Tavares in recent months.
The Portuguese manager himself, during the presentation of the half-year results in June 2024 at the Capital Market Day, had acknowledged the results and strategy. However, the financial targets had not been touched. On September 30, the profit warning saw targets revised downward. The revision of financial objectives caused the stock to crash on the stock exchange, down 14%. Performance in North America weighed most heavily on these numbers, and the deterioration in global industry dynamics in a context where competitive dynamics have intensified due to both increased supply and increased Chinese competition.
In the United States, given Stellantis’ situation, investors filed a class action lawsuit. Dealerships, disappointed with distribution management, turned against Tavares. Unions criticized various decisions, including not reopening the Belvidere plant. The manager tried to resolve issues as he had done in other Groups in the past, but this time his touch wasn’t magical: the replacement of the CFO and other top-level executives did not have a positive outcome. The company’s shares have plunged 38% in the last 12 months, putting more anxiety in shareholders’ minds.
It was known that Tavares would not be confirmed, as he had announced his retirement at the beginning of 2026, at the end of his contract. However, this news appears unexpected, as the Board of Directors had still given confidence to the manager. Meanwhile, his role will be assumed by an internal committee led by Stellantis Chairman John Elkann.
“The process for appointing a new CEO is already underway, managed by a Special Committee of the Board, and will be concluded by the first half of 2025,” the company writes in a statement. “In the meantime, a new Executive Committee chaired by John Elkann will be established.”
Stellantis nevertheless confirms the targets presented to the financial community on October 31, 2024, regarding the full-year 2024 results. At the root of the resignation were different visions about the near future. Henri de Castries, senior independent director, commented: “Stellantis’ success since its creation has been based on perfect alignment between reference shareholders, the board, and the CEO. However, in recent weeks, different views have emerged that led to today’s decision by the Board and the CEO.”
“We are grateful to Carlos for his constant commitment over these years and for the role he played in creating Stellantis, in addition to the previous turnarounds of PSA and Opel, initiating our journey to become a global leader in the industry,” Elkann declared. “I intend to get to work immediately with our new interim executive committee, with the support of all our Stellantis colleagues, while we complete the process of appointing a new CEO. Together we will ensure the timely implementation of the company’s strategy in Stellantis’ long-term interest and that of all its stakeholders.”