Stellantis, the automotive giant behind iconic brands like Chrysler, Jeep, Fiat, and Peugeot, has announced the resignation of its CEO, Carlos Tavares. The decision follows disagreements with the company’s board, coupled with declining sales and growing pressure for leadership change.
Tavares’ departure comes on the heels of significant challenges for Stellantis, including a dramatic drop in sales, an excess inventory of unsold vehicles at dealerships, layoffs at several production facilities, and mounting calls for his removal. In recent months, the brand has offered white-collar employees buyouts and announced 1,100 layoffs of workers in a Detroit plant.
Neither of these actions seemed to be enough to reduce the issues the company is facing.
Criticism has come not only from the United Auto Workers (UAW) union, representing Stellantis’ U.S. workforce, but also from a council of the company’s American dealers.
Henri de Castries, Stellantis’ Senior Independent Director, cited “differing perspectives” between Tavares and the board as the primary reason for the leadership shakeup.
At 66, Tavares has had a storied career in the automotive industry. He played a pivotal role in orchestrating the merger of France’s PSA Group—makers of Peugeot—with Fiat-Chrysler, creating Stellantis in January 2021. Previously, Tavares had served as PSA Group’s chairman and was slated to retire when his contract expired in early 2026.
Stellantis has stated that the process to select a permanent CEO is already underway and is expected to conclude by mid-2025. In the interim, the company will be led by a newly formed Executive Committee chaired by John Elkann, the head of the Agnelli family, Stellantis’ largest shareholder.
The company emphasized that its leadership transition is part of an effort to stabilize operations and refocus its strategy during this challenging period.