Carlos Tavares, CEO of the Amsterdam-based Stellantis, which has its North American headquarters in Auburn Hills, resigned Sunday amid reports of declining profits, poor U.S. sales, and tension between unions and dealers.
Until a new CEO is named, Stellantis will be run by a new Interim Executive Committee, chaired by John Elkann, the company’s chairman. A Special Committee of the Stellantis board hopes to conclude its work of finding a replacement for Tavares within the first half of 2025, according to the company.
“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry,” Elkann says. “I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
Tavares departs with Stellantis shares are down 40 percent in the last 12 months and third quarter 2024 sales down 20 percent compared to last year.
“Tavares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots,” said UAW President Sean Fain in a statement. “We look forward to new Stellantis leadership that respects hardworking UAW members and is ready to keep its promise to America by investing in the people who build its products.”
Elkann, who also is CEO of the Dutch holding company Exor N.V., was appointed chairman of Stellantis in January 2021. Previously, he served as chairman and executive director of FCA. Prior to that role, he was chairman of Fiat S.p.A. Before becoming chairman of Fiat, he was a board member and vice chairman of the Italian automaker.
Elkann also is chairman of Ferrari N.V. and Ferrari S.p.A. and chairman of GEDI Gruppo Editoriale S.p.A. He also served on the boards of The Economist Group, from 2009 to 2020, and PartnerRe Ltd., from 2016 to 2021.He is a member of the board of trustees and of the Nominating Committee of the Museum of Modern Art (MoMA). He also serves as chairman of the Giovanni Agnelli Foundation.
While attending Politecnico, the engineering university of Turin (Italy), Elkann worked for various companies of the FCA group in the United Kingdom and Poland (manufacturing) as well as in France (sales and marketing).
He started his professional career in 2001 at General Electric as a member of the corporate audit staff, with assignments in Asia, the U.S., and Europe.
