Important separation at Stellantis: CEO Carlos Tavares resigned
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In a brief statement made by Stellantis, it was stated that the company’s board of directors accepted this resignation and has already begun the search for a new CEO. The new CEO is expected to be determined in the first half of 2025. During this process, an interim executive committee will be formed, led by Chairman of the Board John Elkann.
The company did not provide detailed information about the reasons behind the sudden resignation. However, Stellantis’ Senior Independent Director Henri de Castries pointed out some differences of opinion with Tavares. De Castries said: “Stellantis’ success has resulted from an excellent alignment between reference shareholders, the Board of Directors and the CEO since its inception. “However, different views have emerged in recent weeks and this has led to today’s decision,” he said.
It was known that Carlos Tavares was under pressure for various reasons. The UAW (United Automotive Workers Union) had openly demanded Tavares’ dismissal. Additionally, Italian workers went on strike in October to protest production cuts. In addition, dealers have also expressed criticism over a series of missteps such as price increases, excessive inventory and lackluster product portfolio. Moreover, according to the Italian press, the recent decline in sales in America was also stated to be effective in this decision.
Carlos Tavares has frequently brought up that the European Union should impose additional taxes against the threat of Chinese manufacturers. Afterwards, Stellantis made a different move and acquired 20 percent of Chinese Leapmotor with an investment of 1.5 billion euros, becoming the company’s strategic partner.
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