The first and only Stellantis CEO, Carlos Tavares, resigned today. Although the automotive conglomerate is in dire straits, the announcement is still shocking. Less than two months ago, a press release stated that the controversial Portuguese businessman would end his five-year contract in early 2026. However, that won’t be the case anymore. Today, the 66-year-old executive decided to step down, effective immediately.
The search process for a replacement is already “well underway,” which tells us that Stellantis isn’t all that surprised Tavares has called it quits. Until a successor is announced in the first half of 2025, the company will appoint a new interim executive committee chaired by John Elkann. He’s the Stellantis Chairman, Executive Director, and Ferrari Chairman.
Tavares has been rather vocal in recent months, pointing out some of the wrong things within Stellantis. He blamed lousy marketing for Maserati’s slow sales and pointed out quality issues at the Sterling Heights factory, where too many Ram trucks need repairs after leaving the assembly line. There is also an issue with excess inventory, a problem the world’s fourth-largest automaker is trying to solve by doing a better job of matching production with demand.
In 2024, production stoppages impacted many models due to poor demand, ranging from the tiny Fiat 500e to the mighty Dodge Durango. The list also includes Maserati's GranTurismo/GranCabrio, Jeep Grand Cherokee, and the Fiat Panda.
Jeep is down 8% in the United States through the third quarter of the year. Ram and Dodge have fallen by 24%, and Chrysler plummeted by 21%. Despite the Tonale's launch, Alfa Romeo isn’t doing any better, down 10%.
In September, the US Stellantis National Dealer Council sent an open letter to Tavares, accusing him of the "rapid degradation" of Jeep, Ram, Dodge, and Chrysler. That was just the tip of the iceberg:
"The market share of your brands has been slashed nearly in half, Stellantis stock price is tumbling, plants are closing, layoffs are rampant, and key executives fleeing the company. Investor lawsuits, supplier lawsuits, strikes–the fallout is mounting. Your own distribution network, your dealer body, has been left in an anemic and diminished state."
Weeks before stepping down, Tavares said struggling brands would have a couple of years to save themselves, either from extinction or from being sold off. All 14 brands underneath the Stellantis corporate umbrella are fully financed through 2026, so the likes of Lancia and Chrysler are safe until then.
This is not the only significant change within Stellantis in recent months. Two months ago, Santo Ficili was named CEO of Maserati and Alfa Romeo, replacing Davide Grasso and Jean-Philippe Imparato, respectively. The latter was appointed Chief Operating Officer (COO) in the Enlarged Europe and the CEO of Pro One, the commercial side of Stellantis.
Source: Stellantis
