Carlos Tavares, CEO of leading multinational car manufacturer Stellantis, abruptly tendered his resignation on Sunday.
The company immediately accepted Tavares' resignation and began the process of finding a new CEO. According to Go to press release. The company estimates the process will be completed by mid-2025 and announced it has authorized a “new interim executive committee” led by John Elkann to fill the gap.
“We would like to thank Carlos for his many years of dedicated service and the role he played in the creation of Stellantis, in addition to the previous turnaround of PSA and Opel, leading us on the path to becoming a world leader in our industry. I look forward to working with the new interim executive committee, with the support of all of my colleagues at Stellantis, as we complete the process of appointing a new CEO,” Chairman Elkann said in a press release.
Tavares had led the company since it was formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Peugeot, according to PBS. reported. (Related: Stellantis recalls more than 150,000 plug-in hybrids after wave of vehicle fires)
Henri de Castries, senior independent director of Stellantis, said in a press release that disagreements had arisen between the CEO, shareholders and the board in recent weeks, which led to Tavares' resignation. He hinted.
Mr. Tavares has clashed with the Stellantis board over the restructuring plan, according to people familiar with the matter. https://t.co/spmHXSvDsV pic.twitter.com/CSeDS37iQ2
— Reuters (@Reuters) December 2, 2024
company announced The composition of the new interim committee was announced in a press release on Monday.
Tavares' resignation comes two months after the car company faced warnings about declining profits, Reuters said. reported. Stellantis saw its stock price drop about 40% in 2024 alone. This was the worst performance among European-based automakers. noticed.
Jeff Lathem, who runs a Stellantis dealership in Detroit, expressed relief at the CEO's resignation. “It can't get any worse,” he said. Lathem told the magazine that he had not encountered the same problem in his GM work.
“[N]We need new ideas and new forces to plan the future of the company,” said Fabio Caldato, portfolio manager at Acomea SGR, the company that owns Stellantis shares.
Automobile companies are still uncertain. In the United States, the United Auto Workers (UAW) has threatened a nationwide strike over the company's non-compliance with its 2023 contract commitments.
“Mr. Tavares has left behind painful layoffs and a large number of overpriced vehicles sitting on dealership lots,” UAW President Sean Fein said, according to Reuters. The company said it has fulfilled its commitments to the union.
