Short dive:
- Stellantis’ board of directors has accepted the resignation of CEO Carlos Tavares effective December 1, the automaker announced in a press release.
- Tavares had previously planned to step down at the end of his contract in early 2026, but declining revenues and shrinking market share in North America have led to a series of high-profile executive departures and appointments in 2024 as the automaker tries to regain its position.
- Stellantis has set up a special committee chaired by executive director John Elkann to find Taveras’ successor, adding that the search is “well underway” and expected to conclude in the first half of 2025.
Diving information:
Tavares has been the automaker’s CEO since January 2021, when Stellantis was announced as the name of the new global auto company following the merger 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 many other European automotive brands.
Tavares was tasked with leading the automaker’s transformation into a mobility technology company as part of its Dare Forward 2030 plan, which calls for electric passenger vehicles to account for 100% of its sales in Europe and 50% of in North America by 2030. plans have been challenging for Stellantis.
The automaker’s net profit for the first half of 2024 fell 48% year over year, the company reported in July. In October, Stellantis reported a 27% year-over-year decline in net revenue for the third quarter, leading the company to lower its 2024 forecast and initiate corrective actions in an effort to improve sales in North America. Fiat Chrysler division revenue also fell 20% year over year in the third quarter.
Declining sales have led to executive reorganizations at Stellantis, including naming new leaders for the Jeep, Dodge and Ram brands in the U.S. The automaker cited declining revenue due to declining shipments of new vehicles as it works to produce more electric vehicles.
The double-digit drop in revenue follows Stellantis’ record sales in 2023, which led its shareholders approving a 56% pay increase. for Tavares in April. Elkann credited him with the turnaround of the PSA group and Opel, “putting us on the path to becoming a global leader in our industry.” But the company’s financial performance in the second and third quarters appears to have caused a rift between the CEO and the automaker’s executive team.
“The success of Stellantis since its creation is rooted in a perfect alignment between the key shareholders, the board of directors and the CEO,” the company’s senior independent director, Henri de Castries, said in the release. “However, differing views have emerged in recent weeks which have led the Board and the CEO to make today’s decision.”
Taveras began his career at Renault in 1981, where he held various roles, including a two-year stint as COO from 2011 to 2013. He was appointed chairman of the board of directors of the PSA automotive group in March 2014. and subsequently served as EVP and chairman of the Americas management committee and president of Nissan North America from 2009 to May 2011 before being named COO of Renault.
Stellantis is now focused on finding Tavares’ replacement. 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 of our Stellantis colleagues, as we complete the process of naming our new CEO,” Elkann said in the release. “Together we will ensure the continued implementation of the business strategy in the long-term interest of Stellantis and all its stakeholders.”