Stellantis CEO Carlos Tavares resigns amid slumping sales, alleged boardroom disagreements
(CBS DETROIT) — Stellantis CEO Carlos Tavares has resigned after nearly four years in the top spot of the Jeep and Ram maker, which has continued to struggle with slumping sales.
The company, in a release, said his resignation has been accepted by the board and is effective immediately.
Stellantis Senior Independent Director Henri de Castries said in a written statement that differing opinions led to the resignation.
"Stellantis' success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO," De Castries said. "However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision."
Tavares was under a five-year contract that was set to expire in 2026.
In September, the company started looking for a CEO to succeed Tavares, but stated it was part of a normal leadership succession plan.
Company officials say a board committee is leading the search for a new CEO, and that the search is expected to be completed within the first half of 2025.
In the meantime, Chairman John Elkann will lead an interim executive team.
Tavares had been under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance when the company was caught off guard with too much high-priced inventory on dealer lots.
Stellantis, in November, announced layoffs at facilities in Michigan and Ohio, citing a focus on realigning U.S. operations to ensure a strong start to next year. Union leaders have attributed the layoffs to mismanagement.
Note: The above video first aired on Nov. 20, 2024.
