Stellantis N.V. STLA CEO Carlos Tavares resigned abruptly on Monday amid faltering U.S. sales and looming trade pressures, ending his tenure at one of the world’s largest automakers as it grapples with industry-wide challenges.
What Happened: The maker of Jeep, Ram, and Chrysler vehicles announced that its board accepted Tavares’ immediate departure following “different views” that emerged in recent weeks.
Chairman John Elkann will lead an interim executive committee until a permanent CEO is appointed, expected by mid-2025.
The exit comes as Stellantis faces mounting pressure in North America, where dealer inventories remain among the highest in the industry according to Cox Automotive. The company reported a 27% revenue decline to 33 billion euros ($35.8 billion) in the third quarter, missing analyst estimates of 36.6 billion euros.
Adding to the automaker’s challenges, President-elect Donald Trump‘s proposed 25% tariffs on Mexican imports could put over 20% of Stellantis’ earnings at risk, according to S&P Global Ratings. The company relies heavily on Mexican production for profitable models like Ram trucks and the Jeep Compass.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” said Henri de Castries, Senior Independent Director. “However, in recent weeks different views have emerged.”
Why It Matters: Despite the leadership shuffle, Stellantis maintained its full-year 2024 guidance and emphasized progress in reducing U.S. inventory levels. The company aims to launch about 20 new models this year as part of its broader strategy to become carbon neutral by 2038.
Tavares played a crucial role in creating Stellantis through the merger of PSA Group and Fiat Chrysler Automobiles, previously leading successful turnarounds at PSA and Opel. The process to select his successor is underway, managed by a special board committee.
Price Action: Stellantis N.V.’s stock closed at $13.20 on Friday, up 3.17% for the day. In after-hours trading, the stock dipped 0.98%. Year to date, Stellantis has declined, losing 42.73% of its value, according to data from Benzinga Pro.
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