DETROIT — Stellantis CEO Carlos Tavares unexpectedly resigned from the automaker amid growing “different views” between him and the board of directors, the company announced on Sunday.
Stellantis, the world’s fourth-largest carmaker, said the board accepted Tavares’ resignation, which is effective immediately.
The company stated that its search for a new CEO is “well under way” and expects to conclude the process in the first half of next year. Until then, Stellantis will establish an interim executive committee led by Chairman John Elkann.
“Stellantis’ success since its creation has been rooted in perfect alignment between the reference shareholders, the Board, and the CEO. However, in recent weeks, different views have emerged, leading the Board and the CEO to reach today’s decision,” said Henri de Castries, Stellantis’ senior independent director, in a release.
A Stellantis spokesman declined to provide further details about the resignation.
Tavares’ departure comes less than two months after the company announced his planned retirement at the end of his contract in early 2026. At that time, Stellantis stated it would name a replacement by the fourth quarter of next year.
Tavares has led Stellantis since its formation through the 2021 merger between Fiat Chrysler Automobiles and PSA Groupe, where he had served as board chair since 2014.
The longtime automotive veteran, a protégé of former Nissan executive Carlos Ghosn, was widely praised in recent years for leading the merger and making Stellantis one of the world’s most profitable automakers.
However, this year, the company’s financial results have fallen short of expectations, due to mismanagement of the U.S. market — its primary cash generator — including a lack of investment in new or updated products, historically high prices, and severe cost-cutting measures.
Stellantis, which owns brands such as Dodge, Fiat, Chrysler, and Peugeot, lowered its annual guidance targets in September, a month before reporting a 27% decline in third-quarter net revenues.
Stellantis has also struggled with sales this year. The company recently reported a roughly 20% decline in year-over-year global vehicle sales for the third quarter. This included a continued drop in the U.S., despite Tavares’ efforts to correct what he described as “arrogant” mistakes.
U.S.-traded shares of Stellantis have fallen around 43% in 2024.
Tavares made cost-cutting a key priority for Stellantis, reporting reductions of 8.4 billion euros ($9 billion) from the merger.
The cost-saving measures included restructuring the company’s supply chain and operations, cutting jobs in the U.S., and shifting work to lower-cost countries like Brazil and Mexico.
Several current and former Stellantis executives, speaking anonymously due to potential repercussions, previously described the cuts to CNBC as grueling and excessive, causing problems in the U.S.
Tavares pushed back against the claim that the company’s massive cost-cutting efforts had created issues.
“When you don’t deliver for any reason … you may want to use a scapegoat. The budget cut is an easy one. It’s wrong,” Tavares said in July.
Stellantis reduced its headcount by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, according to public filings. This year, additional job cuts, including thousands of plant workers in the U.S. and Italy, have sparked backlash from unions in both countries.
The United Auto Workers union has called for Tavares’ removal for several months, as its members face layoffs and production cuts. Stellantis’ U.S. dealership network has also criticized Tavares due to bloated inventories and the company’s lack of financial support to help sell vehicles.
