Stellantis CEO Carlos Tavares resigned unexpectedly, the company will be run by an "interim executive committee"

Carlos Tavares, the first and only CEO of Stellantis, has abruptly announced his resignation. Despite the serious challenges facing the automotive giant, the decision came as a surprise. Back in September, the company said that the contract with the 66-year-old Portuguese top executive would last until 2026.

Here's What We Know

Stellantis said in a press release that the company's board of directors accepted Carlos Tavares' resignation as CEO with immediate effect. The company is already "full steam ahead" in its search for a new CEO. Until a new CEO is appointed, expected in the first half of 2025, Stellantis will be led by an interim executive committee chaired by John Elkann - chairman of Stellantis and Ferrari.

Tavares has recently publicly criticised the internal problems at the world's fourth-largest carmaker. He has called Maserati's marketing strategy a "failure," highlighted poor production quality at Ram's Sterling Heights plant, and ineffective planning.

What's up with sales?

2024 was a bad year for Stellantis, with a number of models including the Fiat 500e, Dodge Durango, Maserati GranTurismo, Jeep Grand Cherokee and Fiat Panda having to pause production due to falling sales. Jeep's US sales fell 8 per cent in the first three quarters, Ram and Dodge lost 24 per cent and Chrysler collapsed 21 per cent. Even Alfa Romeo sagged 10% despite the launch of the Tonale crossover.

In September, Stellantis dealers in the US openly criticised management, blaming it for the "rapid decline" of the Jeep, Ram, Dodge and Chrysler brands. The letter cited falling stock values, plant closures, mass layoffs, strikes, supplier lawsuits and sales problems.

What's next.

Carlos Tavares stated before his resignation that Stellantis' least popular brands have only a few years to save themselves from extinction or sale. Despite this, all 14 of the company's brands will be funded until 2026, so Lancia and Chrysler are safe for now.

Source: Stellantis