Stellantis chief Carlos Tavares has resigned amid reports of disagreements over strategy at the carmaker.
In October the firm had outlined a departure plan for its CEO which said he would retire at the end of his CEO term in early 2026. However, the company said in a statement that the board had accepted his resignation with immediate effect.
Last month Stellantis reported third quarter shipments (vehicles delivered to dealers, importers and fleets ahead of retail and revenue recognition) down by a fifth after a particularly sharp drop in North America, where it has said it is taking corrective actions to reduce inventory.
It has also slashed its 2024 profit outlook on higher costs in the US market. Stellantis' stock has plummeted this year, contrasting with the performance of Detroit rivals Ford and General Motors.
Stellantis said the process to appoint a new CEO ‘is well under way, managed by a Special Committee of the Board, and will be concluded within the first half of 2025’. Until then, a new Interim Executive Committee, chaired by John Elkann, will be established.
Tensions reportedly rose as the board believed CEO Tavares focused on short-term fixes rather than long-term strategy, leading to his abrupt resignation.
Analysts and shareholders called for fresh leadership, and Tavares, known for clashes with US unions and the Italian government, faced criticism over production cuts and union contract issues.
UAW President Shawn Fain criticised Tavares for leaving behind "a mess of painful layoffs and overpriced vehicles sitting on dealership lots."
Remarks from Stellantis’ Senior Independent Director, Henri de Castries, hinted at internal disagreements between major investors and the CEO. He said: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry.
“I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
