Stellantis will appoint a new chief executive during the first half of 2025 following the sudden resignation of Carlos Tavares.
Recent boardroom clashes at the vehicle manufacturer, which owns a portfolio of brands from Alfa Romeo and Citroen to Peugeot and Vauxhall, have led to Tavares offering his resignation, which the board accepted.
Tavares led an efficiency and profit-seeking drive at the group since it was formed in 2021 by the merger of PSA Group and FCA, however its sales volume has declined and the group has received some criticism for not producing more affordable models.
Tavares came under criticism earlier this year after Stellantis issued a profit warning on its 2024 results, mostly blaming slow sales and bloating inventories in its key North American market.
Last month Tavares announced that Stellantis would close its factory at Luton to reduce costs and focus on its remaining UK assembly plant at Ellesmere Port. He had previously ordered a review of Stellantis’s business in the UK partly in anger at the ZEV Mandate targets which would hit profitability.
Stellantis shares have lost around 40% of their value this year.
In a statement, the vehicle manufacturer said: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO. However, in recent weeks different views have emerged which have resulted in the board and the CEO coming to today’s decision.”
Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry.
“I look forward to working with our new interim executive committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
A source familiar with the matter told Reuters that tensions grew after the board felt Tavares was moving too quickly and focusing on near-term solutions that were not working in the best interests of the company.
The sudden announcement on Sunday indicated that the fissures between the board and Tavares had to be severe, given that the parties decided it was better to operate with no CEO on a short-term basis, Bernstein analysts said.
Stellantis had already indicated that Tavares would retire from the CEO seat at the end of 2026 rather than renew his contract for another term.