Stellantis CEO Carlos Tavares has resigned

Stellantis CEO Carlos Tavares resigns after plummeting profits and sales in the US. Bloomberg reported the indiscretion. The automotive group's board of directors has accepted the resignation of the top manager with immediate effect. The company said in October that it had begun a process to find a successor to Tavares, who had told reporters he would remain until the end of his mandate in early 2026. The CEO will leave his position because his views on the automaker's future diverged from those of some executives. The process for the appointment of a new permanent member is already underway, managed by a Special Committee of the Board – informs a note from Stellantis – and will be concluded within the first half of 2025. In the meantime, a new Executive Committee will be established chaired by John Elkann who will take over the functions previously held by Tavares. In fact, the shareholders of Stellantis are Exor with 23% of the voting rights (14.3% of shares), Peugeot Invest with 11% (7.1%) and the French state through Bpi with 9.6% ( 6.1%). The group – again in the note – confirms the guidance presented to the financial community on 31 October 2024 in relation to the results for the full year 2024.

Elkann: at work

The Senior Independent Director of Stellantis, Henri de Castries, commented: «The success of Stellantis since its creation has been based on a perfect alignment between the relevant shareholders, the board and the CEO. However, in recent weeks different views have emerged which have led the board of directors and the CEO to today's decision.”
«We are grateful to Carlos for his constant commitment over these years and for the role he played in the creation of Stellantis, in addition to the previous relaunches of Psa and Opel, starting our journey to become a global leader in the sector – he states President John Elkann -. I intend to get to work immediately with our new Executive Committee
on an interim basis, with the support of all our Stellantis colleagues, as we complete the process of appointing a new CEO. Together we will ensure the timely implementation of the Company's strategy in the long-term interests of Stellantis and all its stakeholders.”

The numbers

In the third quarter of 2024, Stellantis saw revenues decline by 27% to 33 billion euros, mainly due to a decline in deliveries and an unfavorable mix, as well as the impact of prices and exchange rates. Consolidated deliveries, as anticipated, amounted to 1.148 million units, down 279,000 units, or 20% compared to the previous year. The problems are recorded on both sides of the Atlantic: -17% in Europe and -36% in North America. Percentages which translated into numbers tell of 496,000 vehicles registered in Europe from July to September in 2024 compared to 599,000 in 2023 (-103,000) and 299,000 sold in the USA compared to 470,000 12 months ago (-171,000).

The latest quarterly data

The lower volumes accounted for 9.7 of the 12 billion in lost revenues. “The third quarter of 2024 included production gaps on several models for the global product transition, planned inventory reductions in North America and difficulties in a challenging European market,” the group informed in the call with analysts at the end of October. In the last 12 months, Stellantis shares have lost 38%: you have to go back to July 2022 to see the 12 euros per share again.

The unions

The reactions of the unions were not long in coming. «Tavares resigned. The Italian workers remain. And we want an industrial and employment plan immediately”, writes Michele De Palma, general secretary of Fiom-Cgil, on Facebook. commenting on the CEO's farewell to the Stellantis group. «After the resignation of CEO Tavares, we expect a new management in the shortest possible time that will provide discontinuity compared to the past with respect to employment, production and industrial commitments in our country – echoes Uilm general secretary Rocco Palombella -. The new CEO has the Italian factories and workers at heart. Bring car production back to Italy and relaunch the Maserati luxury hub. To manage the transition we need responsibility and protection of employment and professionalism.”
«Now, more than ever – adds the Fim Cisl secretary, Ferdinando Uliano -, it becomes essential to quickly identify a new managing director who can respond positively to the requests we have made and who can quickly open the discussion with us necessary to respond positively to the our requests. Our requests remain clear, we need strategic investments in Italy, starting from the introduction of a new small production platform, new models, investments in research and development, we need to confirm the Termoli giga-factory, guarantees that there will be no plant closures and unilateral dismissals, which would have devastating consequences for families and territories. These points – continues Uliano – have always represented our priorities, and we will measure the new leaders of Stellantis on the basis of their ability to provide concrete answers in these directions. Only through real commitment will it be possible to build good trade union relations and a sustainable industrial future for our country. Fim-Cisl will continue to carefully monitor the situation and continue its commitment to protect workers and relaunch the Italian automotive sector. We reiterate to the Italian Government the urgency of convening top management and trade union organizations at Palazzo Chigi as soon as possible.”

December 1, 2024 (changed December 1, 2024 | 9:15 pm)

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