Carlos Tavares assumed office back in 2021 when the conglomerate was formed
Stellantis CEO Carlos Tavares has quit his job amidst some internal disputes and demotivating global sales. Stellantis has been struggling to achieve desired demand and sales internationally. In the last few months, we witnessed a significant slowdown in EV sales. Note that the overall sales have gone up. However, the demand is not as high as anticipated. Hence, many established, as well as new players backtracked on their strategy to expand. In fact, we even saw many models being delayed. Clearly, the situation is not too healthy.
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Carlos Tavares Steps Quits As Stellantis CEO
The official decision was announced yesterday after the board of directors accepted Tavares’ resignation. To replace him temporarily, an Interim Executive Committee has been established led by Board of Directors Chairman John Elkman. They have confirmed that the new CEO will be appointed within the first half of 2025. Understandably, the hunt for a new Stellantis chief is underway.
Interestingly, Carlos Tavares said that he would stick to his role in the company until his mandate ended in early 2026. However, he suddenly decided to step down. As per a Bloomberg report, he resorted to this decision after a dispute with the board over how to tackle the declining sales which also led to the crash in the stock price.
To put things into perspective, in the 3rd quarter, Stellantis reported a 27% drop in revenue and a 20% decline in shipments at the global level. Furthermore, things were even more concerning in the U.S. with the shipments down by a considerable 36%. In fact, to cut costs, the company even announced that it would sell its massive Arizona proving grounds by the end of the year. Moreover, the production of numerous models has momentarily been paused.
This includes the Fiat Panda, electric Fiat 500e, Dodge Durango and Jeep Grand Cherokee. Going even further, the launch of the all-electric Ram 1500 REV and range-extended Ram 1500 Ramcharger has been delayed as well. In a similar light, Maserati, Chrysler and Alfa Romeo have been struggling severely. On the other hand, the United Auto Workers union President Shawn Fain said that this decision is “a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long.”
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Learn Electric Cars Says
The times for electric car makers are tough on many levels. A prominent CEO of one of the biggest automotive conglomerates in the world stepping down is a testament to that. Going forward, it will be interesting to see how things shape up in terms of tariffs, technology and policies around the globe. In any case, unpredictable times lie ahead.