The primary and solely Stellantis CEO, Carlos Tavares, resigned at this time. Though the automotive conglomerate is in dire straits, the announcement remains to be surprising. Lower than two months in the past, a press launch said that the controversial Portuguese businessman would finish his five-year contract in early 2026. Nevertheless, that received’t be the case anymore. Right this moment, the 66-year-old govt determined to step down, efficient instantly.
The search course of for a substitute is already “properly underway,” which tells us that Stellantis isn’t all that shocked Tavares has referred to as it quits. Till a successor is introduced within the first half of 2025, the corporate will appoint a brand new interim govt committee chaired by John Elkann. He’s the Stellantis Chairman, Govt Director, and Ferrari Chairman.
Tavares has been fairly vocal in current months, stating a number of the fallacious issues inside Stellantis. He blamed awful advertising and marketing for Maserati’s sluggish gross sales and identified high quality points on the Sterling Heights manufacturing facility, the place too many Ram vehicles want repairs after leaving the meeting line. There’s additionally a problem with extra stock, an issue the world’s fourth-largest automaker is attempting to resolve by doing a greater job of matching manufacturing with demand.
In 2024, manufacturing stoppages impacted many fashions as a result of poor demand, starting from the tiny Fiat 500e to the mighty Dodge Durango. The checklist additionally contains Maserati’s GranTurismo/GranCabrio, Jeep Grand Cherokee, and the Fiat Panda.
Jeep is down 8% in the USA via the third quarter of the yr. Ram and Dodge have fallen by 24%, and Chrysler plummeted by 21%. Regardless of the Tonale’s launch, Alfa Romeo isn’t doing any higher, down 10%.
In September, the US Stellantis Nationwide Supplier Council despatched an open letter to Tavares, accusing him of the “fast degradation” of Jeep, Ram, Dodge, and Chrysler. That was simply the tip of the iceberg:
“The market share of your manufacturers has been slashed practically in half, Stellantis inventory worth is tumbling, crops are closing, layoffs are rampant, and key executives fleeing the corporate. Investor lawsuits, provider lawsuits, strikes–the fallout is mounting. Your personal distribution community, your seller physique, has been left in an anemic and diminished state.”
Weeks earlier than stepping down, Tavares stated struggling manufacturers would have a few years to save lots of themselves, both from extinction or from being offered off. All 14 manufacturers beneath the Stellantis company umbrella are absolutely financed via 2026, so the likes of Lancia and Chrysler are protected till then.
This isn’t the one vital change inside Stellantis in current months. Two months in the past, Santo Ficili was named CEO of Maserati and Alfa Romeo, changing Davide Grasso and Jean-Philippe Imparato, respectively. The latter was appointed Chief Working Officer (COO) within the Enlarged Europe and the CEO of Professional One, the industrial facet of Stellantis.
