(Source : AP News) Stellantis CEO Carlos Tavares has stepped down after nearly four years at the helm of the global automaker, effective immediately. The resignation comes as the company grapples with slumping sales, rising competition, and strained relations with both U.S. dealers and the United Auto Workers (UAW) union.
Tavares, who took charge of Stellantis in January 2021 following its merger with Fiat Chrysler Automobiles (FCA), led the company during a period of growth, but faced increasing pressure in recent months due to weak financial performance and internal conflicts. Under his leadership, Stellantis – which owns brands like Jeep, Ram, Citroën, Dodge, Maserati, and Opel – saw a significant decline in third-quarter revenues, posting a 27% drop in net revenue and a 20% fall in global shipments.
The company’s North American operations, long a key profit driver, were particularly hard-hit, with revenues plunging 42% to 12.4 billion euros ($13.1 billion) in the third quarter. Stellantis attributed the poor performance to rising competition, high vehicle prices, and sluggish sales, with many high-priced models remaining unsold on dealer lots.
In the wake of disappointing financial reports, Tavares faced criticism from U.S. dealers and the UAW, which voiced discontent over his cost-cutting measures, including factory delays and layoffs. The UAW accused him of mismanagement and mistreating workers, with President Shawn Fain calling Tavares’ resignation “a major step in the right direction.” The union had been vocal in demanding Tavares’ ousting, citing painful job cuts and vehicle pricing issues.
Tavares’ resignation also follows mounting pressure in Europe, where the Italian government and labor groups criticized Stellantis over its production plans and potential relocation of assembly plants to lower-cost countries. Thousands of Italian autoworkers staged a walkout, demanding greater job security and employment protections.
Stellantis has confirmed that it is in the process of finding a new, permanent CEO, with an interim executive committee, led by chairman John Elkann, taking over in the meantime. The company had already initiated leadership changes in October, including new heads of North American and European operations, and had been anticipating Tavares’ departure closer to the end of his five-year contract in 2026.
Henri de Castries, Stellantis’ senior independent director, stated that while Tavares’ resignation followed “different views” within the company, the automaker’s success remains rooted in strong alignment between its board, shareholders, and CEO. Elkann thanked Tavares for his contributions to Stellantis’ creation and noted that the company is eager to appoint a new CEO in the near future.
The move marks a significant turning point for Stellantis, as it faces mounting challenges in the global auto market.
