Stellantis CEO Carlos Tavares has stepped down, effective immediately. This sudden departure contrasts with his initial plan to retire upon his contract's expiry in 2026.
An executive committee, led by Stellantis Chairman John Elkann, will manage the company until a new CEO is appointed by mid-2025. Henri de Castries, a senior director, noted that discord among shareholders, the board, and Tavares was the catalyst for his resignation.
Tavares became CEO after the 2021 merger of Fiat Chrysler Automobiles and Groupe PSA, having previously led Groupe PSA and overseen significant changes, including the acquisition of Opel and Vauxhall.
Stellantis is currently grappling with declining global sales, with a 17% dip across six brands by the third quarter of 2024. Tavares had proposed drastic measures, such as ending brands in North America like Alfa Romeo and Fiat, an idea that caused friction within the board and led to his swift exit.
Carlos Tavares exits Stellantis as CEO amid internal conflicts and strategic disagreements. The company is temporarily under the control of an executive committee, facing challenges like declining sales and brand strategy conflicts, while searching for new leadership by 2025.
