AUBURN HILLS (WWJ/AP) The CEO of Stellantis, Carlos Tavares, has resigned after nearly four years on the job, the automaker announced.
In a statement; the automaker announced the company’s Board of Directors accepted his resignation from his role on Sunday, December 1st.
The resignation takes effect immediately.
The company said the search for a new CEO, managed by a Special Committee of the Board, is already "well underway" since Tavares had plans to retire at the end of 2025 or early 2026, close the end of his five-year contract. The search will now expedite, and it's expected to wrap up by June.
Until then; Stellantis will establish a new Interim Executive Committee—led by Chairman John Elkann-- to run the company.
Stellantis has been dealing with slumping sales. They posted a 27% plunge in net revenue for its third quarter of this year--$36 billion, down from $45 billion during the same period in 2023. They also suffered a 20% drop in global shipments of new vehicles, resulting from action to reduce inventories.
"Now Carlos Tavares has been under fire recently," WWJ Autobeat Jeff Gilbert reported. "The UAW has complained about him. They say he has backed off on some investment promises. Dealers have complained, saying their product portfolio has not been quite in balance as they would like to see."
WWJ Auto Analyst John McElroy reported pressure to get rid of Tavares came from unions, dealers and shareholders.
"Employee morale is rock bottom and the suppliers despise the way the company's been treating them. The surprise is he didn't go sooner," McElroy said.
In October; Tavares also faced questioning in Italy over the company's production plans-- as the Italian government accused the automaker of relocating plants to low-cost countries.
As then head of PSA Peugeot; he took the reigns of Stellantis in January 2021, when it merged with Fiat Chrysler Automobiles.
Netherlands-based Stellantis--which owns brands including Chrysler, Dodge, Jeep and Ram--is the fourth largest automaker in the world. The company's North American Headquarters are located at the Chrysler World Headquarters and Technology Center in Auburn Hills.
Company officials released the following statements.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
- Stellantis’ Senior Independent Director, Henri de Castries
“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry. 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. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
-Chairman John Elkann