Carlos Tavares has stepped down as the CEO of Stellantis, effective immediately, as the automaker faces mounting challenges including slow sales and a grim financial outlook for 2024. Stellantis, known for brands like Jeep, Fiat, and Peugeot, announced that it aims to appoint a new CEO by mid-2025, with a special committee already overseeing the search for a successor.
Struggles and Leadership Shakeup
Tavares, once celebrated as one of the automotive industry’s most respected leaders, found himself under intense scrutiny after Stellantis issued a profit warning earlier this year. The company projected a €10 billion cash burn in 2024, largely driven by sluggish sales and growing inventories, particularly in the critical North American market. This financial forecast, combined with a 40% drop in Stellantis’s stock price this year, has placed immense pressure on Tavares and the company’s leadership.
The resignation follows a period of disagreement between Tavares and Stellantis’s board, culminating in the decision to part ways. Tavares had been expected to retire in 2026, but the timing of his departure signals a shift in strategy for the company.
Plans for a New Leadership
The Stellantis board, led by chairman John Elkann, has already begun the search for a permanent CEO, with an appointment expected by mid-2025. In the meantime, an interim executive committee will take charge of the company’s day-to-day operations. Tavares, who led Stellantis since its formation in 2021 through the merger of Fiat Chrysler and PSA Group, leaves behind a company navigating a difficult period in the automotive industry.
With Stellantis grappling with financial difficulties, the company is looking for new leadership to guide it through these turbulent times.