Carlos Tavares, the former CEO of Stellantis, has stepped down following a series of crises that shook the company. Once regarded as a key architect behind Stellantis’ formation and strategic direction, Tavares’ sudden resignation comes after a period of mounting challenges, particularly in the critical North American market. His departure marks the end of an era for the automotive giant, which saw the merger of PSA Group and Fiat Chrysler Automobiles (FCA) in 2019, a deal largely attributed to Tavares’ leadership.
Taking the reins, at least temporarily, is John Elkann, the billionaire heir to the Fiat empire and chairman of Stellantis. Elkann, whose family has controlled Fiat for over a century, will now lead a newly formed interim executive committee while Stellantis searches for a permanent successor. The company’s statement confirmed that the search for a new CEO is already underway.
Tavares’ exit comes amid significant difficulties at Stellantis, particularly in the U.S. market, where the company has faced a slump in vehicle sales. In recent months, Stellantis had dropped in the global rankings for car sales, slipping to sixth place. Tavares had been under fire for a strategy that some dealers and investors perceived as short-termist, focused on boosting short-term profits at the expense of long-term stability. Critics within Stellantis pointed to his decision to liquidate U.S. inventory at discounted prices to salvage the 2023 results, a move that was seen as emblematic of his prioritization of immediate results over sustainable growth.
John Elkann, who has been deeply involved in Fiat’s operations since his early twenties, is not expected to remain in a hands-on operational role for long. As the CEO of Exor, the investment company that manages the Agnelli family’s wealth, Elkann has long preferred a governance role rather than day-to-day management of the family’s automotive holdings. His focus has been on Exor’s broader portfolio, which includes stakes in major companies, sports clubs, and media outlets. While Elkann’s leadership in the interim may stabilize the company’s governance, his long-term involvement in Stellantis’ operations remains uncertain.
The timing of Tavares’ resignation adds a layer of complexity to an already precarious situation. In September, Stellantis warned investors that it would aggressively cut its U.S. inventory, which many saw as a desperate move to stem losses and maintain profitability in the short term. The company also revised its profit margin forecast, signaling deeper issues than initially anticipated. Despite the setbacks, Stellantis confirmed that it remains on track to meet its revised financial guidance for the year.
Tavares, known for his turnaround of struggling car brands like Peugeot and Opel, had been instrumental in shaping Stellantis’ growth. Under his leadership, the company had posted record results, but recent months have seen his reputation tarnished by internal dissatisfaction and market volatility. His exit follows a series of missteps that many believe contributed to a breakdown in trust between him and Stellantis’ board, leading to his resignation.
In Elkann’s statement, he acknowledged Tavares’ significant contributions to Stellantis but emphasized the need for new leadership to steer the company through its current challenges. As the search for a permanent CEO intensifies, the future of Stellantis will depend on its ability to recover from the fallout and regain investor confidence.
Stellantis, a global powerhouse with brands such as Jeep, Ram, Peugeot, and Opel under its belt, faces a critical period of transition. The company must address key issues including its performance in the U.S., its long-term strategy, and the restructuring challenges imposed by regulatory pressures. As Elkann takes charge temporarily, the eyes of the automotive world will be on Stellantis as it navigates this pivotal moment in its history.
