Stellantis has just been left without its top executive, one of the most vocal figures in the European automobile industry. Its CEO since the merger between the FCA and PSA groups, Carlos Tavares, presented his resignation today with immediate effect to the Board of Directors.
The Portuguese executive carried out a policy of cost savings and synergies between both consortiums that provided Stellantis with outstanding financial results from the beginning. As a result, Tavares was one of the highest-paid managers in the industry.
However, 2024 was a year in which it faced strong criticism from shareholders. For the first time they had to revise their forecasts for the end of the year, with a loss in cash flow of more than 10,000 million euros.
In the last quarter, sales had fallen by 20% and profits by 50% in the first half of the year. These factors were blamed on buyers’ low appetite for electric vehicles, a strategy it had pursued during its
Furthermore, his clashes with unions in the United States, as well as with the Italian president, Giorgia Meloni, caused investors to lose confidence.
In the statement published by the company they state that “in recent weeks, opposing positions have emerged that have led the Board and the CEO to make today’s decision. The success of Stellantis since its creation has been based on a perfect alignment between shareholders, directors and Carlos Tavares.
An executive committee, led by president John Elkann, will take the reins of the world’s fourth largest manufacturer until a successor is named, “a process that is already underway and will conclude in the first half of 2025.” Tavares’ term was scheduled to end in 2026.
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