Stellantis CEO Carlos Tavares has resigned from his position after nearly four years at the helm of the automaker, which owns popular car brands such as Jeep, Citroën, and Ram. The announcement of Tavares' resignation came as the company continues to grapple with declining sales.
The world's fourth-largest carmaker, Stellantis, revealed that its board has accepted Tavares' resignation, effective immediately. The company stated that the search for a new permanent CEO is already in progress. In the interim, an executive committee led by chairman John Elkann will be established to oversee operations.
Under Tavares' leadership, Stellantis, formed from the merger of PSA Peugeot and Fiat Chrysler Automobiles in January 2021, has faced challenges in the North American market. The company's profits, primarily driven by its North American operations, have been impacted by increased competition and shifting market dynamics.
In its third-quarter financial report, Stellantis reported a 27% decrease in net revenues, attributed to delays in launching new products and efforts to reduce inventory levels. The company's global shipments of new vehicles also dropped by 20% during the same period.
Notably, Stellantis' net revenues for the three-month period ending Sept. 30 amounted to 33 billion euros (approximately $36 billion), down from 45 billion euros in the previous year. Revenue declines were observed across all regions, with North America experiencing a significant 42% decrease.
Tavares' cost-cutting measures, including factory delays and layoffs, have drawn criticism from U.S. dealers and the United Auto Workers union. The union welcomed Tavares' resignation, citing his alleged mismanagement of the company and mistreatment of the workforce.
Stellantis has faced challenges beyond the U.S., with pressure mounting in Italy over production plans and accusations of relocating assembly plants to lower-cost countries. The company had previously made leadership changes in October in an effort to boost sales.
Stellantis' senior independent director Henri de Castries emphasized the importance of alignment between shareholders, the board, and the CEO for the company's success. The decision to accept Tavares' resignation was made following differing views that emerged in recent weeks.
Chairman John Elkann expressed gratitude for Tavares' contributions to Stellantis and expressed anticipation for appointing a new CEO. The company did not provide further comments beyond the official announcement of Tavares' resignation.
