The CEO of Stellantis, Carlos Tavares, presented his resignation from office this Sunday with immediate effect, as confirmed by the automotive group itself. The owner of Fiat and Peugeot announced in early October the start of a “formal process” to appoint the Portuguese executive’s successor, with a departure date scheduled for early 2026.
However, the poor results achieved by the group in the third quarter, with a 20% drop in sales and a 50% contraction in profits in the first half of the year, would have precipitated events. The Stellantis board of directors met this Sunday and, according to the statement sent to the media, “accepted the resignation” of Tavares, after disagreements with the board emerged that led to the decision. Stellantis is spain’s leading automotive manufacturer. Tavares himself, in fact, met the President of the Executive, Pedro Sánchez, last monday.
According to the company, the process to appoint a permanent replacement will be completed in the first half of 2025. In the meantime, the management of the company will fall to an executive committee chaired by John Elkann, group president. “Our thanks to Carlos for these years of dedication and for the role he played in the creation of Stellantis, along with the previous PSA and opel processes, putting us on the path to becoming a global leader in the sector,” explains in a statement from Elkann himself .
For his part, the director of Stellantis, Henri de Castries, states that “the success of Stellantis since its creation has been based on the perfect alignment between the key shareholders, the board of directors and the CEO. Though, different views have emerged in recent weeks which have led the board of directors and CEO to make today’s decision.” Stellantis confirmed its year-end forecasts, after reducing revenue expectations following the poor third quarter results.
Tavares, 66, took over executive power at PSA Group in 2014, a year after the French government bailed out the auto group with more than 7 billion euros in public funds. He then piloted the merger with fiat Chrysler (FCA), which took place at the end of 2019, subsequently creating the world’s fourth largest automotive manufacturer, of which Tavares remained the top executive.
His abrupt departure coincides with a moment of maximum complexity for the major European car manufacturers. Volkswagen announced at the end of October its intention to close three plants in Germany, with a 10% pay cut, given the difficulties in competing with Chinese electric car manufacturers, in particular BYD, and with the American Tesla.
Tavares himself did not rule out the possibility of Stellantis closing due to Chinese competition, although he later clarified that the group is not about to sell any of its brands. “If the Chinese conquered 10% of the market in Europe at the end of their offensive,this would be equivalent to 1.5 million cars. That’s equivalent to seven assembly plants. European manufacturers will have to close them or sell them to the Chinese. Nobody talks about it,” he said in statements to the French newspaper Les Echos.
Stellantis is Spain’s leading automotive manufacturer. The company confirmed in early October that it will build a mega battery plant in Zaragoza, after receiving €133.7 million in public aid from the third Perte call for electric and connected vehicles (Perte VEC III). Previously he had already obtained another 55 million for this initiative, which he considered insufficient. In total Stellantis received 357.8 million from the various Pertas launched by the Government.In his meeting with Sánchez, Tavares rated this help as “very satisfactory.”
Who are the potential candidates to succeed Carlos Tavares as CEO of Stellantis?
Interview Between Time.news Editor and Automotive Expert
Time.news Editor (TNE): Welcome to Time.news. Today, we have the pleasure of speaking with Dr. Emily Carter, an expert in automotive industry trends and corporate governance.We’re here to discuss the recent unexpected resignation of Carlos Tavares as CEO of Stellantis. Emily, thank you for joining us.
Dr. Emily Carter (DEC): Thank you for having me.It’s great to be here,especially to discuss such a significant growth in the automotive sector.
TNE: Let’s dive right in. Carlos Tavares has been a prominent figure in the automotive world. What do you think his resignation means for Stellantis and the broader automotive industry?
DEC: Tavares’s resignation is indeed a pivotal moment for Stellantis. He was instrumental in steering the company through a challenging transition phase,especially with the merging of Fiat Chrysler and PSA Group. His departure raises questions about leadership continuity and strategic direction. There’s a lot at stake, especially with the industry’s shift towards electrification and sustainability.
TNE: absolutely. He announced a “formal process” for appointing a successor just a few weeks ago. Do you think this indicates issues within the company, or is it more about external pressures?
DEC: It’s a mix of both. The automotive industry is undergoing rapid transformation, and companies are under immense pressure to innovate and adapt. Tavares’s resignation could signal internal disagreements on strategic direction, or it may reflect external challenges such as market competition, supply chain disruptions, or regulatory pressures related to emissions standards. The timing does suggest that there may have been mounting pressures that ultimately led to his decision.
TNE: Stellantis has a diverse portfolio. How crucial will the next CEO be in handling this diversity and pushing for a unified vision?
DEC: the next CEO will play a critical role in harmonizing Stellantis’s diverse brands and leveraging that portfolio effectively. Each brand has its unique identity and customer base.The new leader must be able to create a cohesive strategy that respects thes differences while also pushing for innovation, especially in electrification. They’ll need to foster collaboration among the brands to streamline operations and capture market opportunities in the evolving landscape.
TNE: What should potential candidates focus on as they step into this role?
DEC: They must prioritize a clear vision for the future of mobility.Candidates should focus on advancing Stellantis’s electric vehicle (EV) strategy, enhancing sustainability practices, and increasing operational efficiencies. Additionally, they should be adept at navigating the complexities of global markets and be prepared to engage with regulatory challenges and adapt to consumer trends toward green technologies.
TNE: Given the challenges and opportunities facing the automotive industry, do you have any predictions on how Stellantis might navigate this transition?
DEC: It’s hard to say definitively, but if Stellantis can leverage its size and expertise across its various brands while pivoting hard toward EVs and sustainability, it could emerge as a leader in the industry.The new CEO will need to be visionary and decisive,capable of making bold moves while ensuring stability and continuity.If they can align the brands under a compelling narrative, Stellantis could thrive even amidst the uncertainty.
TNE: Thank you, Dr. Carter, for yoru insights. It’s clear that the resignation of Carlos Tavares opens a new chapter for Stellantis, one filled with both challenges and potential. We appreciate your expertise on this matter.
DEC: Thank you! It was a pleasure to discuss such an vital topic, and I look forward to seeing how this all unfolds in the coming months.
TNE: And to our readers, stay tuned for the latest updates as we monitor the unfolding narrative at Stellantis and beyond.