Mon Dec 02 12:43:57 UTC 2024: ## Stellantis CEO Carlos Tavares Resigns Amidst Internal Disputes and Financial Underperformance

**DETROIT** – Carlos Tavares, CEO of Stellantis, the world’s fourth-largest automaker, has unexpectedly resigned, the company announced Sunday. The decision follows disagreements between Tavares and the board of directors regarding the company’s direction. His departure is effective immediately.

Stellantis, which includes brands like Jeep, Dodge, Chrysler, and Peugeot, cited differing viewpoints as the reason for the resignation. While the company lauded Tavares’ role in the successful merger of Fiat Chrysler Automobiles and PSA Groupe in 2021, recent financial underperformance has fueled criticism.

Stellantis’ stock plummeted approximately 7% in premarket trading Monday following the announcement, adding to a roughly 43% decline already seen in 2024. Analysts have expressed concern over the potential negative impact of a prolonged CEO vacancy.

The company’s financial struggles this year stem from underperformance in the crucial US market, attributed to a lack of investment in new products, high prices, and aggressive cost-cutting measures. Stellantis lowered its annual guidance in September, following a 27% drop in third-quarter net revenue and a 20% decline in global vehicle sales.

Tavares’ cost-cutting initiatives, while resulting in reported €8.4 billion in reductions, have faced criticism for being excessive and leading to operational problems, particularly in the US. This has resulted in significant job cuts, sparking conflict with unions like the United Auto Workers (UAW), who had actively campaigned for his removal. Dealers have also voiced concerns over inventory levels and a lack of financial support.

UAW President Shawn Fain welcomed Tavares’ resignation, stating it’s a “major step in the right direction” after months of calling for his removal due to “reckless mismanagement.”

Stellantis has initiated a search for a new CEO, aiming to complete the process within the first half of 2025. In the interim, Chairman John Elkann will lead a newly formed executive committee. The company maintains its lowered annual guidance.

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