Dec. 1 (UPI) – Carlos Tavares, CEO of automotive giant Stellantis, has resigned abruptly following a sharp decline in the company’s stock value this year. The announcement came Sunday, with the company confirming it is actively searching for a successor, aiming to appoint a new CEO by mid-2024.
Stellantis, the manufacturer of well-known brands such as Jeep, Peugeot, Ram Trucks, and Alfa Romeo, expressed gratitude for Tavares’ leadership during his tenure, including his pivotal role in the company’s formation.
“Our thanks go to Carlos for his years of dedicated service and the instrumental role he played in the creation of Stellantis,” said Chairman John Elkann. “I look forward to working with our Interim Executive Committee and our Stellantis colleagues to ensure the company’s long-term strategic success as we finalize the selection of a new CEO.”
Resignation Amid Boardroom Disagreements
The resignation comes after recent disagreements between Tavares and the Stellantis board, a dynamic highlighted by Henri de Castries, the company’s senior independent director.
“Stellantis’ success has been built on strong alignment between shareholders, the board, and the CEO,” de Castries stated. “However, in recent weeks, differing views have surfaced, leading to today’s decision.”
A Challenging Year for Stellantis
Tavares’ resignation caps off a turbulent year for Stellantis, during which its stock value plummeted by over 50%, dropping from a March high of $29 to $13.20 as of Friday, according to The New York Times.
In October, Stellantis reported Q3 net revenues of $34.7 billion, a 27% decline compared to the same period last year, driven by lower vehicle shipments and operational challenges. Year-over-year shipments dropped by 20%, the company revealed in its financial disclosures.
A Pivotal Role in Stellantis’ Formation
Tavares, 66, was instrumental in the January 2021 merger of Fiat Chrysler and Peugeot, which created Stellantis, now the world’s fourth-largest automaker. His tenure was marked by efforts to streamline operations and integrate the company’s diverse portfolio of brands.
Union Reaction to Tavares’ Departure
The United Auto Workers (UAW) union welcomed the announcement, calling it a step toward addressing longstanding issues at Stellantis.
“We welcome this move as a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long,” the UAW said in a statement to CNN. “We are pleased to see the company responding to pressure and correcting course.”
Stellantis now faces the dual challenge of stabilizing its financial performance and navigating leadership transition while maintaining its long-term strategic vision.
