Mon Dec 02 09:44:09 UTC 2024: ## Stellantis CEO Carlos Tavares Resigns Amidst Sales Slump and Criticism
**DETROIT, MI** – Stellantis, the automotive giant behind brands like Chrysler, Jeep, Fiat, and Peugeot, announced Sunday that CEO Carlos Tavares has resigned. The departure follows a period of declining sales, criticism from the United Auto Workers (UAW) and its US dealer council, and disagreements with the board of directors.
Tavares, who spearheaded the merger that created Stellantis in 2021, leaves the fourth-largest automaker globally after a tumultuous period marked by a significant drop in sales. Global sales fell 10% in the first half of the year and plummeted 20% in the third quarter. US sales alone are down 17% year-to-date.
High vehicle prices, particularly in North America, are cited as a major factor. The average Stellantis vehicle sold for nearly $55,000 in the third quarter, deterring many traditional customers. This pricing strategy, coupled with layoffs at several plants, including Warren, Michigan, and Toledo, Ohio, fueled criticism from the UAW, which threatened further strike action.
The UAW welcomed Tavares’ resignation, citing mismanagement and mistreatment of workers. Similarly, the US dealers’ council, led by Kevin Farrish, heavily criticized Tavares’ focus on profit margins and executive compensation over competitive pricing and production. Tavares’ 2023 compensation package of €36.5 million ($36.8 million USD) further intensified the backlash.
Stellantis stated that Tavares’ resignation resulted from “different views” with the board. An interim executive committee, chaired by John Elkann, will lead the company until a permanent CEO is appointed by mid-2025. Despite the leadership change, Stellantis maintains its lowered profit forecast for 2024.
First Piper 