Carlos Tavares, the embattled CEO of Stellantis, has resigned, the automaker announced Sunday, citing “differences with the board” and mounting pressures stemming from disappointing sales and operational challenges. Stellantis, the global automotive giant behind Chrysler, Jeep, Fiat, and Peugeot, has faced growing criticism over its performance under Tavares’ leadership.
Tavares’ departure follows a tumultuous period marked by a steep decline in sales, an oversupply of unsold inventory on dealer lots, and workforce reductions at multiple Stellantis plants. His leadership had drawn sharp criticism from the United Auto Workers (UAW) union, which represents Stellantis’ U.S. workers, as well as from a council of U.S. dealers who labeled his tenure ineffective and detached from market realities.
“Carlos Tavares and the Stellantis board of directors had different views,” Stellantis Senior Independent Director Henri de Castries said in a statement, attributing the resignation to strategic disagreements.
The automaker has struggled to maintain its footing in a competitive global market. Layoffs at key manufacturing facilities and criticism of poor dealer relations in the United States further compounded the challenges. Meanwhile, a glut of unsold vehicles has tarnished Stellantis’ reputation as it seeks to compete with rivals in a rapidly evolving industry.
Tavares’ resignation has left questions about Stellantis’ future strategy. Analysts suggest that the board will look for a leader with a fresh approach to tackling market dynamics and improving dealer and worker relations. As the automaker navigates its next steps, its new leadership will face the daunting task of regaining investor confidence and revitalizing the company’s performance.
The resignation marks a significant shift for Stellantis, which now enters a pivotal phase in addressing its internal and market struggles.
