Stellantis CEO Exits Amid Sales Slump, Board Clash

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Facts

  • Global automaker Stellantis announced on Sunday that Carlos Tavares has resigned from his role as CEO, reportedly over disagreements with the board about company strategy and declining performance.[1][2]
  • Board Chairman John Elkann will lead an interim executive committee while the search for a permanent CEO — expected to conclude in the first half of 2025 — continues.[1][2]
  • Formed in 2021 through the merger of Fiat Chrysler and PSA Group, Stellantis manages 14 automotive brands, including Jeep, Chrysler, Dodge, Fiat, and Peugeot. Several leadership changes were made in October in an effort to boost sales.[3][4]
  • Tavares served as Stellantis CEO from day one, experiencing success until last year. In 2024, however, the company's stock price has fallen approximately 47%, significantly underperforming the S&P 500's 25% gain.[5][6]
  • In October, Stellantis reported that its net revenues dropped by 27% in Q3 2024, including a 42% dip to €12.4B in North America, with Tavares facing criticism, and even threats of industrial action from US dealers and the United Auto Workers union.[4][7]
  • In a statement on Monday, UAW Pres. Shawn Fain said that Tavares' resignation was 'a major step in the right direction' for Stellantis, stressing that thousands of union members had been calling for his departure for weeks.[8]

Sources: [1]New York Times, [2]Stellantis.com, [3]Fortune, [4]Associated Press, [5]Forbes, [6]Yahoo Finance, [7]Reuters and [8]UAW.

Narratives

  • Narrative A, as provided by Autoblog. Tavares is finally gone from Stellantis — this is great news for the company, its shareholders, and its supporters, as a change in leadership may be just what's needed to put Stellantis back on track. His European vision failed to achieve success in an American market, and his poor leadership is to blame for recent bad results.
  • Narrative B, as provided by Top Gear. The board will have its work cut out trying to replace Tavares, who despite strong headwinds achieved much in his time as CEO. He embraced the shift to electric vehicles and was successful in spotting areas to cut costs. But at the end of the day, Stellantis may be too large a company for just one person to run.

Predictions