Stellantis CEO Carlos Tavares resigns

Stellantis CEO Carlos Tavares abruptly resigned from his position at the automaker, citing a difference in views. The board accepted his resignation, effective immediately, and created a Special Committee of the Board to search for his replacement. Until then, a new Interim Executive Committee, chaired by John Elkann, will handle the duties of CEO.

Carlos Tavares’ resignation comes amid falling sales

Just two months ago, Stellantis confirmed that Tavares would retire at the end of his contract in early 2026. Now it looks like a difference in views has spurred the executive to call it quits early. Given the company’s sales record over the past year, it comes as no surprise Tavares has chosen - or was forced - to make his exit earlier than expected.

“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,” said Henri de Castries, Stellantis’ Senior Independent Director.

While creative differences may be the official reason for Tavares’ resignation, his unpopularity among customers, dealers, and the UAW likely played a role. Both the Stellantis dealer network and United Auto Workers union criticized Tavares for his decision to prioritize company profits amid declining sales, market share, and the reputation of Chrysler, Dodge, Jeep, and Ram.

In October, Stellantis reported its sales had fallen nearly 20% year over year, further extending the company’s freefall. Prior to the sales report, Stellantis adjusted its profit margin forecast down to 7% on the high end.

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Carlos Tavares formed and led Stellantis from inception

Tavares is no stranger to the automotive industry, having kicked off his career at Renault as a test-driving engineer in 1981. From there, he held various positions and worked for Nissan as the vice president of product strategy and planning. In 2009, Tavares took the wheel in the western hemisphere, overseeing Nissan in both North and South America.

In 2011, Tavares became Renault’s COO, number two to Carlos Ghosn, the chairman and CEO of Renault and Nissan. Following an argument between the two, however, Tavares resigned in August 2013. Shortly after, in 2014, Tavares became CEO of PSA Group, during which he spearheaded cost-cutting measures. After PSA Groups’ sales in China began slipping, he led a merger of PSA Group and Fiat Chrysler Automobiles.

Thus, Stellantis was born in January 2021, with Tavares leading the newly formed company. During his tenure, he warned the industry of Chinese EV companies and Tesla. As Stellantis’ sales continued to falter, Tavares faced increased criticism and pressure with each passing month.

Social media reactions have fallen to one side

Word of Tavares’ resignation has spread like wildfire across social media, with enthusiasts leaning to one side. Overall, most appear to be pleased Tavares is finally gone, with many citing his poor leadership and European vision in an American market for the company’s falling sales.

For many, his attempts to turn Jeep into a luxury brand, at least in price, have become a sticking point, and they aren’t wrong. According to Autotrader, a new 2024 Jeep Wrangler Unlimited Rubicon 392 will cost you more than $90,000 on average, with many exceeding a six-figure price tag. That pricing puts the Wrangler in the realm of high-end marques, including Mercedes-Benz and Land Rover, instead of the off-road machine the American brand is known for.

Stellantis has also received criticism from enthusiasts over the choice to nix several popular models in favor of an electrified powertrain. While the door is still open for ICE-powered models via the STLA platform, that hasn’t changed consumer sentiment. To add more fuel to the fire, so to speak, Jeep recalled more than 150,000 Wrangler and Grand Cherokee PHEVs due to a fire risk in October.

Final thoughts

Stellantis is in deep trouble, but there may be a light at the end of the tunnel. Perhaps a change in leadership could be the spark the company needs to right the ship. First and foremost, however, the company needs to get on the same page as their dealer network and UAW union and move forward as allies instead of adversaries. Without both a solid sales network and means of production, Stellantis simply won’t survive. If this is a spiral with little chance of recovery, however, perhaps we’ll see Jeep change hands yet again over the next year or so, as the brand is so wont to do.

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