Stellantis CEO resigns suddenly after sales drop

Automaker Stellantis on Sunday accepted CEO Carlo Tavares’ resignation after he spent nearly four years in the role. The company is the fourth largest automaker in the world and owns car brands including Chrysler, Jeep, Dodge, Fiat, and Alfa Romeo. Tavares left Stellantis over differing views with the company’s board of directors, according to a company statement, and his departure took effect immediately. The board established a new interim committee, led by board chairman John Elkann, to run the business until a permanent CEO is found. The company previously said Tavares would retire at the end of his contract in 2026. He has led Stellantis since its creation in 2021 through a merger between Fiat Chrysler and French automaker PSA Group, where he had been board chair since 2014.

What led to Tavares’ departure? Stellantis in October reported a 20% year-over-year drop in third-quarter sales in the United States. Major brands sold in America reported a drop and the U.S. Stellantis National Dealer Council publicly blamed Tavares for the slump. The council said Tavares made short-term decisions in 2023 that secured the company record profits that year but led to tumbling market shares for American brands in 2024. U.S. shareholders in August sued Stellantis in the Southern District of New York, alleging that the company artificially inflated its stock price during the first half of 2024.

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