Carlos Tavares, Chief Executive Officer of Stellantis NV, speaks to the media at the Stellantis Auto manufacturing plant in Sochaux, France, Thursday, October 3, 2024.
Nathan Line | Bloomberg | Getty Images
Detroit – Stellar CEO Carlos Tavares unexpectedly resigned from the automaker amid “differences of opinion” between executives and the board of directors, the company said on Sunday.
The world’s fourth-largest carmaker said its board had accepted Tavares’ resignation on Sunday. His departure is effective immediately.
Jeep-maker Stellantis said the process to appoint a new CEO is “going well” and expects to conclude the search in the first half of next year. Until then, the company said it will establish a new interim executive committee led by Chairman John Elkann.
“The success of Stellantis is rooted in the perfect fit between the reference shareholders, the board and the CEO since its creation. However, in recent weeks different perspectives have emerged, which led the board and the CEO to come to today’s decision,” Henri de Castries, Senior Independent Director of Stellantis, said in the announcement.
A Stellantis spokeswoman declined to disclose any additional information regarding the resignation.
Tavares’ resignation comes two months after the company announced he would retire at the end of his contract In early 2026. At the time, Stellantis said aa plans to name a replacement by the fourth quarter of next year.
Stellantis stock in 2024
Tavares Stellantis, who has been chairman of the board since 2014, has led the way through the 2021 merger between Fiat Chrysler Automobiles and PSA Group.
The longtime automotive veteran — a prodigy of former Nissan executive Carlos Ghosn — has been widely heralded in recent years for spearheading mergers and making Stellantis one of the world’s most profitable automakers.
But this year, the company’s financial results have fallen sharply short of expectations amid a lack of investment in new or refurbished products, historically high prices and mismanagement of the US market – its main cash generator – with drastic cost-cutting measures.
The company, which owns brands such as Dodge, Fiat, Chrysler and Peugeot, lowered its annual guidance targets in September, a month ahead of automakers. reported a 27% decline in the third quarter Net income.
The company’s US-traded shares are off roughly 43% in 2024.
Tavares made cost-cutting a critical mission for Stellantis, including self-reporting. 8.4 trillion euros ($9 trillion) In reduction by merger.
Cost-saving measures include restructuring the company’s supply chain and operations, as well as reducing headcount in the US and increasing work in low-cost countries such as Brazil and Mexico.
Several Stellantis executives, who spoke on condition of anonymity because of potential repercussions, described previously The cuts to CNBC are harsh to the point of overkill and causing problems in the US
Tavares pushed back on claims that the company’s massive cost-cutting efforts had created problems.
“When you don’t deliver for whatever reason … you might want to use a scapegoat. Budget cuts are easy. It’s wrong,” Tavares said in July.
Stellantis has cut 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, according to public filings. Additional job cuts this year involving thousands of plant workers in the US and Italy have drawn the ire of unions in both countries.
The United Auto Workers Union has called Removal of Tavares For several months its members face layoffs and production cuts. Stellantis’ US dealership network also spoke out against Tavares amid bloated inventory and a lack of financial support from the company to sell vehicles.
