The surprising resignation of Carlos Tavares marked a particularly serious point for the automotive group, which is definitely going through the most difficult period in its history. The reasons for this event were sought particularly in the disappointing results in North America, a strategic market for Stellantis, where iconic brands such as Jeep and Ram Trucks are experiencing a slump in sales.
Tensions with investors for Stellantis
Tensions that have been building at Stellantis management and among investors seem to have reached their highest levels with the sudden resignation of CEO Carlos Tavares. As anticipated, the main reason for the rupture seems to be the disappointing results obtained in North America, a region that has always played a very important role for the company. In fact, it is precisely in America that the major prestige brands such as, for example, Jeep, Chrysler and Ram Trucks, have experienced a slowdown in sales and difficulties for dealers in reducing their vehicle inventories.
In the first nine months of 2024, total sales in the United States dropped by 17 percent, with numbers accurately reflecting the group’s crisis. In the third quarter, deliveries totaled 299,000 units, again down from 470,000 in the same period last year. This decline meant a sharp drop in revenues for Stellantis, which fell from $21.5 billion to only $12.4 billion. The automaker had tried to show positive “movement” when it said it had reduced U.S. dealer inventories by more than 80,000 units by the end of October, bringing it closer to its reduction target of 100,000 units.
Despite this supposed improvement, the overall situation of the Stellantis group in North America remained very difficult. According to The Detroit News, between July and September, sales of the Stellantis group’s major North American brands plummeted: Jeep posted a 6 percent drop, Ram Trucks lost 19 percent, and Chrysler suffered a 47 percent collapse. Even top models such as the Jeep Wrangler and Jeep Grand Cherokee experienced problems, down 14 percent and 6 percent, respectively. Numbers that have obviously caused major knock-on effects on production and, therefore, cost revisions and cuts. On these consequences the unions have been raging for months.
Stock market follows the downward trend
As a result, the stock market has also reacted very sharply. Since the beginning of 2024, Stellantis shares have lost more than 40 percent of their value, which is much worse than their American competitors. In such a situation, the big names are also in crisis, although they have had a smaller slump. Ford posted a smaller loss of 7 percent, while General Motors even gained 55 percent.
In response to the crisis, Stellantis had implemented a series of major internal reorganizations at the North American top management in October, replacing market manager Carlos Zarlenga and chief financial officer Natalie Knight. With Tavares not directly involved in this overhaul, the group confirmed that the CEO would not be reappointed when his term expires in 2026. The resignation, however, as confirmed on December 1, 2024, came well in advance.