Tue Dec 03 11:34:21 UTC 2024: ## Stellantis CEO Carlos Tavares Out After Profit Warning Clash

**Paris, France –** Stellantis, the multinational automotive giant, announced the immediate resignation of its chief executive, Carlos Tavares, on Sunday. The departure, following a significant profit warning in September, highlights a clash between Tavares’s aggressive cost-cutting approach and the board’s strategy.

Tavares, known for his hard-driving style honed under Carlos Ghosn at Renault, consistently pushed for increased profitability. However, this approach reportedly clashed with the board’s concerns following a buildup of unsold, overpriced vehicles in North America and delays in European car launches. Stellantis’s September profit warning, predicting losses of €5bn to €10bn this year, further fueled the tension. While Tavares advocated for drastic cost cuts to generate cash, the board reportedly feared such measures would create long-term problems.

The announcement sent Stellantis shares plummeting over 6% on Monday. Senior independent director Henri de Castries cited “different views” as the reason for Tavares’s departure, while Tavares himself remained silent. Analysts point to the declining North American market and investor concerns over Tavares’s nearly €37m compensation package as contributing factors.

Tavares’s legacy is complex. While credited with the successful turnaround of Peugeot and the creation of Stellantis, a merger of Fiat Chrysler and PSA Group, his leadership also faced criticism. The United Auto Workers union celebrated his departure, citing painful layoffs and overpriced vehicles. Concerns also remain regarding the integration of Stellantis’s 14 distinct brands and cultures.

John Elkann, chairman of the Stellantis board, will lead an interim executive committee. The unexpected exit marks a swift downfall for Tavares, less than a year after Stellantis reported record profits. The company’s future direction remains uncertain, but the abrupt change in leadership suggests a significant shift in strategy is imminent.

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