Stellantis CEO Carlos Tavares resigns amid slumping sales, alleged boardroom disagreements

(CBS DETROIT)Carlos Tavares, the CEO of Stellantis, left after almost four years in the top position of the Jeep and Ram manufacturer, which has been dealing with declining sales.

According to a press announcement from the corporation, the board has approved his resignation, which takes effect right away.

Henri de Castries, Senior Independent Director of Stellantis, stated in a written statement that the resignation was the result of disagreements.

“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” De Castries stated. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

Tavares’ five-year contract was scheduled to end in 2026.

Although the business claimed it was following a standard leadership succession plan, it began searching for a CEO to replace Tavares in September.

According to company authorities, the search for a new CEO is being led by a board committee and should be finished in the first half of 2025.

A temporary executive team will be led by Chairman John Elkann in the interim.

After a poor first-half financial performance, Tavares faced criticism from U.S. dealers and the United Auto Workers union. The company was caught off guard by an excess of expensive inventory on dealer lots.

With an emphasis on realigning U.S. operations to guarantee a solid start to the upcoming year, Stellantis announced layoffs at locations in Michigan and Ohio in November.Union leaders blame poor management for the layoffs.

Note: On November 20, 2024, the aforementioned video debuted.

This report was contributed to by the Associated Press.

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