Carlos Tavares, chief executive officer of Stellantis, resigned on Sunday, the company said. File Photo by Ian Langsdon/EPA-EFE
Dec. 1 (UPI) — The chief executive officer of car-maker giant Stellantis has abruptly resigned, the company said Sunday, following a precipitous drop in share value this year.
The maker of more than a dozen car brands, including Jeep, Peugeot, Ram Trucks and Alfa Romeo, announced it had accepted Carlos Tavares’ resignation and was “well underway” in selecting his successor, with intent to name a new CEO in the first half of next year.
“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis,” Stellantis Chairman John Elkann said in a statement.
“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 stepped down following recent disagreements with Stellantis’ board, a situation highlighted by senior independent director Henri de Castries, who said Sunday that the company’s success had been “rooted in a perfect alignment” between the shareholders, the board and the CEO.
“However, in recent weeks, different views have emerged, which have resulted in the Board and the CEO coming to today’s decision,” Castries said.
The announcement follows a difficult year for Stellantis, one in which its stock price dropped by more than 50%, from a high of roughly $29 in March to $13.20 on Friday, The New York Times reported.
Its Q3 results, released in late October, showed net revenues of approximately $34.7 billion, down 27% compared to the same period last year, due to lower shipments and other issues.
According to the statement, the company shipped 20% fewer units year-over-year.
Tavares, 66, was a central figure in the creation of Stellantis, the fourth-largest automaker, in January 2021 through the merger of Fiat Chrysler and Peugeot.
Following the announcement of Tavares’ resignation, United Auto Workers union said in a statement to CNN that they “welcome” the move as “a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long.
“We are pleased to see the company responding to pressure and correcting course,” it said.