Stellantis CEO Steps Down Amid Labour Disputes, Shrinking Sales

Stellantis, the world’s fourth-largest automaker, announced today that it has accepted the resignation of its CEO, Carlos Tavares. The executive has been in charge of the company since 2021 but has recently faced shrinking sales numbers and major labour concerns.

Stellantis formed in 2021 following the merger of Fiat Chrysler Automobiles and Group PSA, which counted Peugeot, Opel, and Citroen, and other among its brand portfolio.

When the conglomerate formed, it was the North American brands, such as Jeep, Dodge, and Ram that were the brand’s main source of profits, reports the Associated Press. However, the post-pandemic era has been hard on this part of the business. In the third quarter of 2024, Stellantis’ sales were down 42 per cent in North America. Although that was the most significant drop for the company, its troubles were ran deep, and global revenues were down 27 per cent in the same period.

At the same time as its sales have slumped, Stellantis has alienated its workers, leading United Autoworkers (UAW) President Shawn Fain to describe Tavares’ departure as a “major step in the right direction,” in a statement.

“Tavares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots,” wrote Fain, who went on to charge Stellantis withe being a “company that has been mismanaged [with] a workforce that has been mistreated for too long.”

The company has also gotten on the wrong side of its North American suppliers, which has led to work stoppages, frustrations, and at least five lawsuits. Things aren’t much better in Europe, where the conglomerate has run afoul of Italian workers who recently held a one-day walkout amid concerns about assembly leaving the country.

Reports broke this fall that Stellantis had started looking for a replacement for Tavares. WAt the time, the company claimed that the efforts were part of its standard process and that the search was being conducted to prepare for the end of the CEO’s contract in 2026.

However, the company was not able to find a replacement for Tavares before his early exit. While it looks for one, Stellantis will be led by a special committee made up of members of the board of directors, led by the chairman, John Elkann. The board expects to find a new CEO in the first half of 2025.

“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.,” said Elkann, in a statement. “Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”