Carlos Tavares, CEO of Stellantis, the world’s third-largest automaker and owner of favorites like Jeep, Ram, Fiat, and Alfa Romeo among others, has officially resigned. In October, it was reported that Tavares would be retiring in 2026, but today, Stellantis issued a statement that the board of directors had accepted Tavares’ resignation, effective immediately.
Stellantis was already on the hunt for a new boss previously but has now confirmed a new CEO will be appointed in the first half of 2025. Between now and then, management duties will be shared, as a new Interim Executive Committee, chaired by John Elkann, will be set up to oversee the conglomerate. Elkann is no stranger to senior roles, currently chairing the board at Stellantis and Ferrari.
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Alfa Romeo
- Founded
- 24 June 1910 (as A.L.F.A.)
- Founder
- Ugo Stella, Nicola Romeo
- Headquarters
- Turin, Piedmont, Italy
- Owned By
- Stellantis
- Current CEO
- Santo Ficili
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Dodge
- Founded
- December 14, 1900
- Founder
- John Francis Dodge & Horace Elgin Dodge
- Headquarters
- Auburn Hills, Michigan, U.S.A
- Owned By
- Stellantis North America
- Current CEO
- Carlos Tavares
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Jeep
- Founded
- 1943
- Founder
- Willys-Overland Motors
- Headquarters
- Toledo, Ohio
- Owned By
- Stellantis
- Current CEO
- Antonio Filosa
A House Divided…
Stellantis wouldn’t want to air its dirty laundry at a moment like this, but a comment within the press release suggests it was not a happy house with Tavares in charge. “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board, and the CEO,” explains Stellantis’ Senior Independent Director, Henri de Castries, continuing, “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
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Stellantis has been troubled for some time. When the conglomerate was formed by the merger of Groupe PSE and FCA in early 2021, there were plans to return many of its poorly performing brands back to their former glory. Lancia, Fiat, Chrysler, and Maserati were some of those brands, and the previous timeline for success had been a decade to turn things around. But earlier this year, reports suggested those brands didn’t have the time they thought they did and were only safe until 2026. Rumors were spreading wildly that Stellantis was looking to cut costs, contemplating the sale of Maserati, Lancia, and DS, although Stellantis vehemently denied these claims.
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Stellantis Risks Major Shutdown Over Failed Promises
The UAW says Stellantis has failed to keep promises, and it may initiate another strike if a solution is not found soon.
Tavares also caught flak from the UAW for failed promises made to the workers union, promises that had been integral in getting the UAW to stop their strike action last year that was crippling the American auto industry.
What Comes Next?
What is clear is that not everyone was a fan of Tavares and his plans for Stellantis. Various Stellantis brands still appear strong, so there’s no immediate cause for concern that your favorite vehicles like the Ram 1500 and Jeep Grand Cherokee are going anywhere anytime soon. But all eyes will be on Stellantis over the next six months to see who is appointed the new CEO and whether they can bring stability to the Stellantis ship in rocky waters.
“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.”
– John Elkann, Stellantis Chairman