The company says a new interim executive committee, led by chairman John Elkann, will be established in the meantime.
Carlos Tavares, the CEO of Stellantis, is stepping down after nearly four years at the helm of the automaker, which encompasses brands like Jeep, Citroën, and Ram. This decision comes amidst a challenging period marked by declining sales for the company.
The world’s fourth-largest carmaker announced that its board accepted Tavares’ resignation Sunday, effective immediately.
Stellantis has confirmed that the search for a new permanent CEO is actively underway. In the interim, an interim executive committee will be put in place, with John Elkann assuming the lead as chairman.
Having previously led PSA Peugeot, Tavares took the reins of the Netherlands-based Stellantis in January 2021 following the merger with Fiat Chrysler Automobiles. This consolidation created a powerhouse in the automotive industry, with a diverse brand portfolio that includes familiar names like Jeep, Citroën, Ram, Dodge, Chrysler, Fiat, Peugeot, Maserati, and Opel.
Stellantis’ North American operations had been the company’s main source of profits for some time, but struggles piled up this year, with the company citing rising competition and larger market changes. As a result of lofty sticker prices and fewer affordable options, many high-priced vehicles have been left unsold on dealers’ lots.
For its third quarter, Stellantis posted 27% plunge in net revenues, as gaps in launching new products and action to reduce inventories also slashed global shipments of new vehicles by 20%.
The carmaker reported net revenues of 33 billion euros (nearly $36 billion ) in the three-month period ending Sept. 30, down from 45 billion euros in the same period last year. All regions except South America reported double-digit dips in revenues — led by North America, which plunged 42% to 12.4 billion euros ($13.1 billion).
In recent months, Tavares had come under fire from U.S. dealers and the United Auto Workers union after the release of dismal financial performance reports. He also oversaw cost-cutting efforts that included delaying factory openings and laying off union workers — further straining the company’s relations with the UAW, which filed several grievances against Stellantis and threatened to strike in recent months.
The UAW welcomed Tavares’ resignation with president Shawn Fain calling the move “a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long.” He noted that thousands of UAW members had been calling for Tavares’ firing for weeks for what Fain called the CEO’s “reckless mismanagement of the company.”
“Tavares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots,” Fain said in a statement. He added that the union looks forward to sitting down with Stellantis’ new chief executive and “will keep using all means available” to hold the company accountable.
Beyond the U.S., Stellantis has faced pressure in Italy — where lawmakers questioned the former chief executive over the company’s production plans in October, with the far-right government accusing the company of relocating assembly plants to low-cost countries. Tens of thousands of autoworkers in the country also held a one-day walkout, calling for more employment certainty and protections.
In efforts to revive sales, Stellantis previously made a number of leadership changes in October, which included naming new heads of operations in North America and Europe. At the time, the company expected Tavares to step down in early 2026, closer to the end of his five-year contract.
The company confirmed in September that it was searching for a CEO to eventually succeed Tavares, but it maintained those efforts were part of standard leadership transition plans.
In a statement Sunday, Stellantis’ senior independent director Henri de Castries said that Stellantis’ success is “rooted in a perfect alignment” between shareholders, the company’s board and the CEO — but noted “different views” had emerged in recent weeks, resulting in the decision to approve Tavares’ resignation.
Elkann, the chairperson of Stellantis’ board, thanked Tavares for “his years of dedicated service and the role he has played in the creation of Stellantis” in an additional statement. He added that he looks forward to appointing a new CEO.
Stellantis did not comment further beyond Sunday’s release. The announcement arrived shortly after Bloomberg reported Tavares’ plans to step down, citing unnamed sources familiar with the matter.
