Carlos Tavares resigns as Stellantis CEO

Stellantis in the process of appointing a new CEO

In an unexpected move just before the year ends, Stellantis CEO Carlos Tavares has resigned with immediate effect. This comes after the automaker announced that the company's Board of Directors, under the Chairmanship of John Elkann, accepted Tavares' resignation as Stellantis CEO.

With it, Stellantis said they are now in the process of appointing a new CEO which will be managed by a Special Committee of the Board. The process is expected to be concluded within the first half of 2025 and a new Interim Executive Committee will be established in the meantime.

So what's the reason behind Carlos Taveres' resignation as the CEO of the company? According to Stellantis Senior Independent Director Henri de Castries, there have been disagreements in recent weeks between the Board of Directors and the CEO. While the executive didn't exactly go into detail about this, the different views between the CEO and the Board could have resulted in Tavares' resignation.

“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 de Castries.

Despite Tavares resigning as Stellantis' CEO, Chairman John Elkann thanked his contribution to the company and his years of dedicated service in the creation of Stellantis.

“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry. I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders,” shared Elkann.

During his tenure as CEO of Stellantis, Tavares oversaw several changes across countless brands. These included Maserati's introduction of EVs and hybrids, the launching of Jeep 4xE plug-in hybrids, Dodge's launching of the Charger EV, and Peugeot's introduction of new EVs and electrified vehicles.

Earlier this year, however, Stellantis suffered slow car sales, low profits, and an increase in car inventory. Combined with Stellantis shares faltering in value this year along with production cuts and the possibility of workers losing jobs, the recent missteps could have also contributed to Tavares' resignation from the company.