Carlos Tavares, the CEO of automotive giant Stellantis, has resigned effective immediately after a boardroom dispute
Carlos Tavares’ sudden resignation from Stellantis, the automotive powerhouse behind brands like Vauxhall, Jeep, Fiat, Peugeot, and Chrysler, follows a turbulent period for the company. Two months ago, Stellantis issued a profit warning, and just last week, it announced plans to shut down its Vauxhall van factory in Luton, threatening 1,100 jobs.
Tavares, once considered one of the most influential figures in the global auto industry, built a reputation as a tough cost-cutter. Before leading Stellantis, he earned acclaim at Renault, where he worked alongside the high-profile CEO Carlos Ghosn, and later at PSA Group, which he famously rescued from near-bankruptcy. His leadership culminated in the 2021 merger of PSA Group and Fiat Chrysler, creating Stellantis.
However, recent challenges have dented his standing. Stellantis faced sharp declines in sales and profits, particularly in North America, where an outdated product lineup and excess inventory hurt its market position. Critics accused Tavares of prioritizing cost-cutting at the expense of product development and quality, leaving the company vulnerable to more agile competitors.
Henri de Castries, Stellantis’ senior independent director, attributed Tavares’ departure to growing disagreements among stakeholders. “Stellantis’ success has been rooted in alignment between shareholders, the board, and the CEO. However, recent differences led to this decision,” de Castries stated.
The company’s struggles, particularly in North America, where unsold vehicles piled up and market share eroded, have amplified dissatisfaction among dealers, workers, and investors. Prof. David Bailey of Birmingham Business School described the situation as a “perfect storm,” exacerbated by industry-wide upheaval and Stellantis’ specific challenges. He noted that these pressures ultimately rendered Tavares’ position untenable.
Stellantis’ share price has plummeted 40% since the start of the year, underperforming its competitors. Following Carlos Tavares’ resignation on Monday, the stock dropped an additional 9%.
Tavares had already announced plans to step down in 2026, opting not to renew his contract—a decision that likely undermined his authority. Stellantis has stated it intends to appoint a new CEO by mid-2024.
In the interim, the company will establish a temporary executive committee led by Chairman John Elkann, a member of Italy’s influential Agnelli family. Elkann, who holds a significant voting stake on behalf of his family, is spearheading the search for Tavares’ successor, making his input pivotal to shaping the company’s future direction.
