Stellantis CEO Carlos Tavares Steps Down Earlier Than Initially Planned

The conflict relates to Stellantis’ slumping sales and how best to right the ship. The board believed Tavares was moving too fast and failed to take a long view of the problems facing the company in favor of short-term maneuvers to salvage his reputation as CEO. Tavares has overseen sliding sales and inflated dealer inventories, leading the automaker’s board to determine that operating with no CEO was better than continuing forward with his recent performance.

In a statement on December 1, Stellantis said, “The company’s board of directors, under the Chairmanship of John Elkann, accepted Carlos Tavares’ resignation today from his role as Chief Executive Officer with immediate effect.” Senior Independent Director Henri de Castries detailed the division between CEO and board, saying, “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board, and the CEO. However, in recent weeks, different views have emerged, which have resulted in the board and the CEO coming to today’s decision.”

Tavares is a respected auto executive, but Stellantis’ problems will take more than visionary leadership to fix. The company has struggled with quality, and its current product offering feels dated compared to more modern models from GM and Ford. Even Jeep, the one brand Stellantis could count on to print money, has struggled, issuing recalls for its plug-in hybrid 4xe models and having vehicles sit on dealers’ lots for much longer than in past years.

[Images: Stellantis]

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