Stellantis, the global carmaker behind Jeep, Citroën, and Ram, announced the immediate resignation of CEO Carlos Tavares. The decision follows ongoing challenges with slumping sales and strained labor relations. Stellantis’ board confirmed the news on Sunday and is now focused on finding a permanent successor.
Leadership Changes at Stellantis
Chairman John Elkann will lead an interim executive committee while the search for a new CEO continues. Tavares, who took over as CEO in 2021 after the merger of PSA Peugeot and Fiat Chrysler Automobiles, played a key role in creating Stellantis. Under his leadership, the company united brands such as Dodge, Chrysler, Fiat, Peugeot, and Maserati.
Despite these accomplishments, Stellantis faced significant struggles during Tavares’ tenure, prompting his early exit.
Financial Struggles and Market Challenges
Stellantis has experienced sharp declines in revenue due to rising competition, inventory shortages, and high vehicle prices. Many vehicles remain unsold, adding pressure to dealerships.
Key financial highlights include:
- Third-quarter revenue: €33 billion (approximately $36 billion USD), a drop from €45 billion in the same period last year.
- Global shipments: Fell by 20%, with North America’s revenue plunging 42% to €12.4 billion ($13.1 billion USD).
All regions, except South America, reported double-digit revenue declines, reflecting widespread challenges.
Union and Workforce Tensions
Tavares faced mounting criticism from U.S. dealers and the United Auto Workers (UAW). The union accused him of poor management and implementing harsh cost-cutting measures, including factory delays and workforce layoffs.
UAW President Shawn Fain welcomed the resignation, calling it “a step in the right direction.” He emphasized that the union would continue holding Stellantis accountable for better workforce treatment.
Labor unrest extended beyond the U.S. Tens of thousands of Italian autoworkers staged a one-day walkout, demanding stronger employment protections and clearer production plans. The company’s relocation of assembly plants to lower-cost countries fueled additional scrutiny in Italy.
Looking Ahead for Stellantis
In October, Stellantis made leadership changes to address declining sales, appointing new heads for North America and Europe. At the time, Tavares was expected to step down in 2026, at the end of his five-year contract. However, disagreements with the board accelerated his departure.
Henri de Castries, Stellantis’ senior independent director, noted “different views” between Tavares and the board. In a statement, Elkann acknowledged Tavares’ role in creating Stellantis and emphasized the importance of aligning the company’s leadership with its future goals.
The Road Ahead
Stellantis faces a critical period as it searches for a leader to stabilize its operations. Addressing challenges like labor relations, inventory issues, and global competition will determine the company’s ability to regain momentum.
