Carlos Tavares is no longer the CEO of Stellantis

As reported in a Stellantis press release, 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.

Stellantis and Carlos Tavares: a relation that has cracked

Disagreements with the Board had grown wider and wider, and declining sales had investors breathing down their necks. Critical situations include worrisome U.S. sales trends and open conflict with the Italian government over job cuts. In the background is the loss of competitiveness of the European auto industry and the massive investment in electrification.

In October 2024 he said: “Others have created chaos and you ask me to resolve the situation and guarantee jobs. I am not a magician, I am a human being like you. You ask me to solve problems created by others, to solve those situations I may have to do things that will not be well received.”

The official from the Company

The process to appoint the new permanent Chief Executive Officer is well under way, managed by a Special Committee of the Board, and will be concluded within the first half of 2025. Until then, a new Interim Executive Committee, chaired by John Elkann, will be established. Stellantis confirms the guidance it presented to the financial community on October 31, 2024, in respect of its full year 2024 results. Stellantis’ Senior Independent Director, Henri de Castries, commented: “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.”

Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry. I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”

Implications in the NRMM

Without Magneti Marelli and Comau, Stellantis is strictly focused on the passenger cars business. As for industrial mobile applications, on par with stationary and marine applications, there remains one asset whose future this news could affect, that of Italy’s VM Motori. Dating back to late 2023 and early 2024 were rumors about the sale of VM, negotiations that were subsequently frozen. We’ll see what happens next. Certainly, the new CEO will have a lot to do. At stake is the future of European automotive and tens of thousands of jobs.