Carlos Tavares Resigns as CEO of Stellantis Amid Sales Slump and Board Disagreements
Stellantis, the parent company of renowned automotive brands such as Chrysler, Jeep, Fiat, and Peugeot, made headlines on Sunday with the announcement of CEO Carlos Tavares’ resignation. The decision came after a series of challenges faced by the company, including declining sales, excess inventory, plant layoffs, and mounting pressure for leadership change.
Reports suggest that Tavares’ departure was a result of disagreements with the board of directors, as well as growing discontent among stakeholders over the company’s performance. The United Auto Workers union in the US and the US dealer council were among those calling for Tavares’ removal.
Henri de Castries, Stellantis’ senior independent director, cited “different views” between Tavares and the board as the primary reason for the CEO’s resignation. This development marks a significant shift for the world’s fourth-largest automaker, following the merger of French automaker PSA Group and Fiat-Chrysler into Stellantis under Tavares’ leadership.
Carlos Tavares, a 66-year-old Portuguese businessman, played a key role in orchestrating the merger that formed Stellantis, positioning the company as a major player in the global automotive industry. Prior to his tenure at Stellantis, Tavares served as the chairman of PSA Group, laying the groundwork for the transformative merger that was finalized in January 2021.
As the search for a new CEO commences, a special committee of the board is overseeing the process with the goal of appointing a permanent chief executive by the first half of 2025. In the interim, an executive committee chaired by John Elkann will steer the company forward, ensuring continuity in leadership during this transition period.
Source: EuroMetal
Despite the recent challenges faced by Stellantis, the company remains optimistic about its future prospects. Recent data from Edmunds suggests that the average selling price of a Stellantis vehicle in the US is expected to reach $58,000 by the fourth quarter of 2023, positioning the brand as a premium player in the market.
As Stellantis navigates this period of transition and seeks a new leader to steer the company forward, stakeholders are keenly watching for developments that will shape the future trajectory of one of the automotive industry’s most prominent entities.
