By The Associated Press’s Wyatte Grantham-Philips
NEW YORK — Amid a persistent battle with declining sales, Carlos Tavares, the CEO of Stellantis, is resigning after almost four years in the top position of the manufacturer, which owns Jeep, Citro n, and Ram.
The fourth-largest automaker in the world declared on Sunday that Tavares’ retirement was accepted by the board, with immediate effect.
The process to select a new, permanent CEO is well underway, Stellantis said on Sunday. A new interim executive committee will be formed in the interim, according to the corporation, with chairman John Elkann in charge.
When PSA Peugeot merged with Fiat Chrysler Automobiles in January 2021, Tavares became leadership of the Netherlands-based corporation, forming an automotive behemoth that is currently the parent of numerous well-known brands. Stellantis’ portfolio also includes Dodge, Chrysler, Fiat, Peugeot, Maserati, and Opel in addition to Jeep, Citroën, and Ram.
For a while, Stellantis’ North American operations were its primary source of revenue; however, this year, the company faced numerous challenges, citing broader market shifts and increased competition.
Stellantis reported a 27% decline in net revenues for the third quarter, as delays in the introduction of new goods and inventory reduction measures also resulted in a 20% drop in new car shipments worldwide.
In the three months ended September 30, the automaker posted net revenues of 33 billion euros, or about $36 billion, compared to 45 billion euros over the same time the previous year. Revenues fell by double digits in every region but South America, with North America seeing the worst decline, falling 42% to 12.4 billion euros. Revenues in Europe fell by 12% to 12.5 billion euros.
The United Auto Workers union and American dealers had been criticizing Tavares in recent months following the publication of poor financial performance reports. Additionally, he oversaw cost-cutting measures that included postponing factory openings and terminating union members, which strained relations with the UAW, which in recent months filed many grievances against Stellantis and threatened to go on strike.
Outside of the United States, Stellantis has been under fire in Italy, where the far-right government accused the firm of moving assembly factories to low-cost nations and MPs questioned the former CEO about the company’s manufacturing plans in October. In addition, tens of thousands of autoworkers nationwide staged a one-day walkout to demand greater safeguards and job security.
Stellantis previously announced a number of leadership changes in October, including new heads of operations in North America and Europe, in an attempt to boost sales. When Tavares’ five-year contract was about to expire, the firm anticipated that he would resign in early 2026.
In September, the business acknowledged that it was looking for a CEO to eventually replace Tavares, but said that the search was a normal part of leadership transition planning.
Henri de Castries, senior independent director of Stellantis, stated in a statement on Sunday that the company’s success is based on the CEO, the board, and shareholders being perfectly aligned. However, he also pointed out that in recent weeks, divergent opinions had surfaced, which led to the decision to accept Tavares’ resignation.
In a separate statement, Elkann, the board chairperson of Stellantis, commended Tavares for his years of devoted service and the part he has played in the establishment of Stellantis. He went on to say that he is eager to name a new CEO.
Beyond the declaration on Sunday, Stellantis remained silent.
More business news
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!