Carlos Tavares, the embattled CEO of Stellantis, has resigned after just a year at the helm, citing responsibility for the company’s rapid decline. His departure comes amid a crisis in the US market and a slump in vehicle sales rankings. John Elkann, board chairman and Fiat heir, will take over as interim CEO until a permanent replacement is found.
Tavares was credited with leading Stellantis to record annual results earlier this year but was unable to sustain the momentum. The company’s US dealers blamed him for prioritizing short-term gains over longer-term problems, which led to a significant reduction in forecasted profit margins.
Elkann, 48, is a member of Italy’s automotive royalty family and has been groomed for leadership since his early twenties. He has no experience running the day-to-day operations of Stellantis but has a proven track record in managing Fiat.
Tavares’ resignation marks a complete reversal of fortune for Stellantis, which acquired over a dozen car brands through two major merger deals. The company’s struggles have led to a 10-run drop in global rankings and a significant decline in US dealers’ confidence.
A special committee of directors will now search for Tavares’ permanent replacement, with the search already underway. Elkann has expressed respect for Tavares’ dedication to Stellantis but faces an uphill battle to restore confidence among investors and dealers.
Source: https://fortune.com/2024/12/02/stellantis-carlos-tavares-john-elkann-billionaire-fiat-heir-agnelli-family-fiat