Dive Brief:
- Stellantis’ board of directors has accepted the resignation of CEO Carlos Tavares effective Dec. 1, the automaker announced in a press release.
- Tavares previously planned to step down at the end of his contract in early 2026, but falling revenue and shrinking market share in North America has resulted in a series of high profile executive departures and appointments in 2024 as the automaker looks to regain its footing.
- Stellantis has established a special committee chaired by Executive Director John Elkann to find Taveras’ successor, adding that a search is “well underway” and expected to be concluded in the first half of 2025.
Dive Insight:
Tavares has served as the automaker’s CEO since January 2021 when Stellantis was announced as the name of the newly established global auto company after the merging of Fiat Chrysler Automobiles and French automaker Peugeot SA. Stellantis is the parent company of Jeep, Dodge, Ram, Chrysler, Fiat, Maserati, Opel, Alfa Romeo and several other European car brands.
Tavares was tasked with leading the automaker’s transformation into a mobility tech company as part of its Dare Forward 2030 plan, which includes electric passenger vehicles accounting for 100% of its sales in Europe and 50% of sales in North America by 2030. But executing those plans has been challenging for Stellantis.
The automaker’s net profit for the first half of 2024 fell by 48% year over year, the company reported in July. In October, Stellantis reported a 27% year-over-year drop in net revenue for Q3, which led to the company lowering its 2024 guidance and initiating corrective actions in an attempt to improve sales in North America. Revenue for its Fiat Chrysler division also decreased by 20% YoY in Q3.
The drop in sales led to executive shakeups at Stellantis, which included naming new leaders for its Jeep, Dodge and Ram brands in the U.S. The automaker cited the revenue declines on a drop in new vehicle shipments as it works to produce more electric vehicles.
The double-digit declines in revenue follows record-high sales for Stellantis in 2023, which led to its shareholders approving a 56% pay hike for Tavares in April. Elkann credited him with a turnaround of its PSA Group and Opel, “setting us on the path to becoming a global leader in our industry.” But the company’s financial performance in Q2 and Q3 appears to have caused a rift between the CEO and the automaker’s executive team.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO,” said the company’s senior independent director, Henri de Castries, in the release. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
Taveras began his career with Renault in 1981, where he served in various roles, including a two-year stint as COO from 2011 to 2013. He was named chairman of the managing board for automaker PSA Group in March 2014 and later served as EVP and chairman of the management committee Americas and president of Nissan North America from 2009 through May 2011 before being appointed as COO of Renault.
Stellantis is now focused on finding a replacement for Tavares. The company did not name an interim CEO in its announcement.
“I look forward to working with our new interim executive committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO,” Elkann said in the release. “Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
