The Stellantis’ first era, the Tavares era, has come to an end. Carlos Tavares, CEO of Stellantis, has stepped down from his position following a significant drop in the company’s profits and sales in the United States.
The resignation, first reported by Bloomberg, was accepted by the board of directors with immediate effect.
Leadership transition underway
Stellantis had announced in October that it was initiating a search for a successor to Tavares, who had previously stated he would remain until his term ended in early 2026. However, differing views on the company’s future between Tavares and other executives accelerated his departure.
The board has established a Special Committee to oversee the selection of a new permanent CEO, with the process expected to conclude by mid-2025. In the interim, a new Executive Committee led by Stellantis Chairman John Elkann will take on Tavares’ responsibilities.
Elkann expressed gratitude for Tavares’ contributions, including his pivotal role in creating Stellantis and revitalizing PSA and Opel. Elkann stated:
“I am committed to working with the interim Executive Committee and all Stellantis colleagues to ensure the timely execution of our strategy, safeguarding the long-term interests of Stellantis and all stakeholders.”
Financial setbacks
The announcement comes after a challenging third quarter in 2024, during which Stellantis reported a 27% drop in revenue to €33 billion. The decline was driven by reduced deliveries, an unfavorable product mix, and pricing pressures.
Global consolidated deliveries fell by 20% year-on-year to 1.148 million units. In Europe, sales decreased by 17%, with 496,000 vehicles sold compared to 599,000 in the same period in 2023. North America saw an even steeper decline, with sales plummeting 36%, from 470,000 units to 299,000.
Stellantis’ primary shareholders include Exor, with 23% of voting rights (14.3% equity), Peugeot Invest with 11% (7.1%), and the French state through Bpifrance with 9.6% (6.1%).
Despite recent challenges, Stellantis has reaffirmed its full-year 2024 guidance, as presented to the financial community on October 31, 2024.
A pivotal moment
Henri de Castries, Senior Independent Director at Stellantis, noted the decision stemmed from “differing views” between Tavares and the board, stating:
“The success of Stellantis since its creation has been built on a perfect alignment between key shareholders, the board, and the CEO. However, recent weeks revealed diverging perspectives, leading to today’s decision.”
As Stellantis navigates this transition, all eyes are on the company’s next steps to regain stability and drive long-term growth in a competitive automotive landscape.
