Stellantis CEO Carlos Tavares steps down as carmaker continues struggle with slumping sales
CBC
Stellantis CEO Carlos Tavares is stepping down after nearly four years in the top spot of the automaker, which owns car brands like Jeep, Citroen and Ram, amid an ongoing struggle with slumping sales.
The world's fourth-largest carmaker announced that its board accepted Tavares' resignation Sunday, effective immediately.
Stellantis noted Sunday that the process of finding a new, permanent CEO is "well under way." In the meantime, the company says a new interim executive committee, led by chairman John Elkann, will be established.
As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January 2021 — when it merged with Fiat Chrysler Automobiles, creating an automotive giant that is the parent to several well-known brands today.
Beyond Jeep, Citroen and Ram, the company portfolio includes Dodge, Chrysler, Fiat, Peugeot, Maserati and Opel.
Stellantis' North American operations had been the company's main source of profits for some time, but struggles piled up this year, with the company citing rising competition and larger market changes. As a result of lofty sticker prices and fewer affordable options, many high-priced vehicles have been left unsold on dealers' lots.
For its third quarter, Stellantis posted a 27 per cent plunge in net revenues, as gaps in launching new products and action to reduce inventories also slashed global shipments of new vehicles by 20 per cent.
The carmaker reported net revenues of 33 billion euros (nearly $49 billion CAD) in the three-month period ending Sept. 30, down from 45 billion euros in the same period last year. All regions except South America reported double-digit dips in revenues -- led by North America, which plunged 42 per cent to 12.4 billion euros ($13.1 billion).
In recent months, Tavares had come under fire from U.S. dealers and the United Auto Workers union after the release of dismal financial performance reports. He also oversaw cost-cutting efforts that included delaying factory openings and laying off union workers — further straining the company's relations with the UAW, which filed several grievances against Stellantis and threatened to strike in recent months.
The UAW welcomed Tavares' resignation with president Shawn Fain calling the move "a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long." He noted that thousands of UAW members had been calling for Tavares' firing for weeks for what Fain called the CEO's "reckless mismanagement of the company."
"Tavares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots," Fain said in a statement. He added that the union looks forward to sitting down with Stellantis' new chief executive and "will keep using all means available" to hold the company accountable.
Beyond the U.S., Stellantis has faced pressure in Italy -- where lawmakers questioned the former chief executive over the company's production plans in October, with the far-right government accusing the company of relocating assembly plants to low-cost countries.
Tens of thousands of autoworkers in the country also held a one-day walkout, calling for more employment certainty and protections.
In efforts to revive sales, Stellantis previously made a number of leadership changes in October, which included naming new heads of operations in North America and Europe. At the time, the company expected Tavares to step down in early 2026, closer to the end of his five-year contract.
