Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, Thursday, Oct. 3, 2024.
Nathan Lane | Bloomberg | Getty Images
Detroit – Stellantes CEO Carlos Tavares has unexpectedly resigned from the automaker amid growing “differences of opinion” between executives and the board of directors, the company said Sunday.
The world’s fourth-largest automaker said its board had accepted Tavares’ resignation on Sunday. His departure is effective immediately.
Jeep maker Stellenbosch said its process to appoint a new CEO is “well underway” and it expects to complete the search during the first half of next year. Until then, the company said it would establish a new interim executive committee led by Chairman John Elkin.
“Stellantis’ success since its inception has been rooted in the perfect alignment between Reference’s shareholders, the Board and the CEO. However, in recent weeks divergent views have emerged resulting in today’s decision by the Board and the CEO. Coming up,” Henry de Castries, senior independent director at Stellantis, said. said in a release.
A Stellantis spokeswoman declined to disclose any additional information regarding the resignation.
Tavares’ resignation comes less than two months after the company announced he would retire at the end of his contract. In early 2026. At the time, Stellantis said it planned to name a replacement by the fourth quarter of next year.
Stellants Stock in 2024
Tavares has led Stellantis since its creation through the 2021 merger between Fiat Chrysler Automobiles and PSA Groupe, where he had been chairman of the board since 2014.
Longtime automotive veterans — the caliber of former Nissan executive Carlos Ghosn — have been widely touted in recent years for leading the merger and making Stellenbosch one of the world’s most profitable automakers.
But this year, the company’s financial results have fallen sharply short of expectations amid mismanagement of the U.S. market — its main cash generator — a lack of investment in new or updated products, historically high prices and extreme costs. Reduction measures.
The company, which also owns brands such as Dodge, Fiat, Chrysler and Peugeot, lowered its annual guidance targets in September, a month before the automaker Reported a 27% decline in the third quarter net income.
Stellantes‘ Sales have also struggled this year. Most recently, the company made a report A reduction of about 20% In year-over-year global vehicles sold during the third quarter. This included extending a year-long free fall in the US despite Tavares’ efforts to correct what he said. “Arrogant” mistakes.
The company’s US-traded shares are down about 43% in 2024.
Tavares made cost reduction a key mission for Stillentis, including the report itself. 8.4 billion euros ($9 billion). In decline from integration.
Cost-saving initiatives include reshaping the company’s supply chain and operations, as well as reducing headcount in the U.S. and increasing operations in low-cost countries such as Brazil and Mexico.
Several current and former Stellantis executives, who spoke on condition of anonymity because of potential implications, described earlier. The cuts at CNBC were extremely painful and caused problems in the US
Tavares pushed back on claims that the company’s massive cost-cutting efforts had caused problems.
“When you don’t deliver for whatever reason … you want to use a scapegoat. Budget cuts are easy, it’s wrong,” Tavares said in July.
Stellantis has cut 15.5 percent, or about 47,500 jobs, between December 2019 and the end of 2023, according to public filings. Additional job cuts this year involving thousands of plant workers in the U.S. and Italy have drawn the ire of unions in both countries.
The United Auto Workers Union has demanded Removal of Tavares for several months as its members face layoffs and reduced productivity. Stellantis’ US dealership network has also spoken out against Tavares amid bloated inventories and the company’s lack of financial support to sell vehicles.