Stellantis, the global automaker behind Chrysler, Jeep, and Peugeot, announced Sunday that CEO Carlos Tavares has resigned following boardroom disagreements, disappointing sales, and mounting criticism.
Tavares, 66, played a pivotal role in the merger of PSA Group and Fiat-Chrysler, forming Stellantis in 2021. His resignation comes amid a 20% global sales decline in the third quarter and rising dissatisfaction over high vehicle prices, which alienated the company’s traditional customer base.
The United Auto Workers union welcomed Tavares’ departure, blaming him for mismanagement and worker mistreatment. US dealer representatives also criticized his focus on record profits and executive pay over affordability, citing layoffs at key plants and declining market share.
Stellantis has appointed an interim executive committee led by Chairman John Elkann while a permanent CEO search progresses. Despite strong 2023 profits, the company cut its 2024 earnings forecast. Industry experts see Tavares’ exit as a turning point for Stellantis as it grapples with market challenges.
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