After a nearly four-year tenure, Carlos Tavares has resigned as CEO of Stellantis.
Stellantis, formed in 2021 from the merger of Fiat Chrysler Automobiles and PSA Group, has struggled to find its footing in the rapidly evolving automotive landscape. Under Tavares’ leadership, the automaker, which holds brands such as Chrysler, Citroën, Dodge, Fiat, Jeep and others, is facing mounting challenges, including a 27% revenue drop in Q3 2024 .
In particular, the automaker is faltering sales in North America, where sales plummeted 42% in the third quarter. Bloated inventories of internal combustion engine (ICE) models, such as the Ram 1500 and Jeep Wagoneer, compounded the automaker’s struggles. Dealers, too, voiced their frustrations, reporting difficulty moving vehicles even as competitors enjoyed stronger demand for both ICE and EV models.
These issues culminated in a $10 billion cash burn forecast for the year.
Tavares has long been perceived as a cautious, if not outright skeptical, of EVs. Despite announcing EV-related goals, including plans for all sales in Europe to be electric by 2030, and 50% in North America by the same time, his actions often told a different story.
For years Stellantis has lagged behind rivals in launching competitive EV models in key markets, particularly in North America. Critics argued that Tavares prioritized cost-cutting measures and near-term profitability over long-term investments.
Stellantis has already begun a search for Tavares’ successor, as the now former CEO had announced plans to leave at the end of his contract in 2026. During this time, the company will be under interim leadership led by board chairman John Elkann.
