Tue Dec 03 11:38:23 UTC 2024: **Stellantis CEO Carlos Tavares Steps Down Amidst Sales Slump**
DETROIT – Stellantis CEO Carlos Tavares has resigned, the company announced today. The departure follows a period of significant financial challenges for the automaker, including a 48% year-over-year drop in net profit for the first half of 2024 and a 27% decline in net revenue for the third quarter. These declines prompted the company to lower its 2024 guidance and initiate corrective actions.
Tavares, who has led Stellantis since its formation in 2021 through the merger of Fiat Chrysler Automobiles and Peugeot SA, had been tasked with overseeing the company’s transition into a mobility tech company as part of its Dare Forward 2030 plan. This plan aims for 100% electric vehicle sales in Europe and 50% in North America by 2030. However, the company’s recent performance has fallen short of these ambitions.
The financial downturn also led to a wave of executive changes within Stellantis, including new leadership appointments for its Jeep, Dodge, and Ram brands. Stellantis attributed the sales decline to a drop in new vehicle shipments as it shifts towards electric vehicle production.
While Tavares received a significant pay raise earlier this year following record sales in 2023, the recent financial performance reportedly created a disagreement between the CEO and the executive team. The company’s senior independent director, Henri de Castries, stated that differing views led to the board and CEO reaching the decision regarding Tavares’ departure.
Stellantis is currently searching for a replacement and has not yet named an interim CEO. The company emphasized its commitment to continuing the implementation of its long-term strategy.
First Piper 