Stellantis CEO Tavares steps down immediately
It was already clear that Stellantis would have to replace the only CEO in the company’s still young history. In October, the company announced that Carlos Tavares’ contract, which runs until the beginning of 2026, would not be extended. Until then, the Portuguese would continue to oversee the transformation process at Stellantis – the management structure was also changed in October, and several management positions were filled.
However, it has been clear since the weekend that Tavares will not be part of this process. On Sunday, Stellantis announced in a press release that the Board had accepted Tavares’ resignation as CEO. “The process to appoint the new permanent Chief Executive Officer is well under way, managed by a Special Committee of the Board, and will be concluded within the first half of 2025. Until then, a new Interim Executive Committee, chaired by John Elkann, will be established,” it continues. The Group also confirmed its financial forecast for the full year, which was published on 31 October 2024.
“Different views have emerged”
In fact, the Group explains its view of the events. “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” says Henri de Castries, Senior Independent Director. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
De Castries does not specify what exactly these differences are. Only one statement in the quote from John Elkann offers room for interpretation. After thanking Tavares for his achievements – including the turnarounds of PSA and Opel – the Chairman of the Board of Directors is quoted as follows: “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.”
However, it has not been confirmed whether there were actually differences regarding long-term interests. Tavares himself is not quoted in the press release.
It had been apparent for months that the relationship between the Board of Directors and the long-celebrated CEO had cooled – which then led to the failed contract extension. Due to his past achievements, Tavares was long considered untouchable internally.
As head and reorganiser of PSA, the Portuguese had been instrumental in driving the merger with FiatChrysler to form Stellantis and has since led the new company – and on paper, quite successfully. Especially considering that the French PSA Group, with Peugeot, Citroen, DS, and later Opel and Fiat, had been unprofitable for a long time. Under Tavares’ leadership, the business was successful again, and Stellantis also has an extensive range of electric cars.
However, there were increasing conflicts behind the scenes. Despite record profits in 2023, the figures for the current year looked significantly worse, and profits fell by 48 per cent in the first half of the year. There were also disputes with dealers, particularly in the North American market. It even went so far that North American dealers complained in a letter about the strategy developed by the Group’s management.
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