Stellantis Shares Slump More Than 7.5% After CEO’s Sudden Resignation
ForbesDec 01
Stellantis CEO Exits Amid Sales Slump, Board Clash
Above: Carlos Tavares during a Bloomberg Television interview at the Paris Motor Show in Paris, France, on Monday, Oct. 14, 2024. Image copyright: Nathan Laine/Contributor/Bloomberg via Getty Images
The Facts
Global automaker Stellantis announced on Sunday that Carlos Tavares has resigned from his role as CEO, reportedly over disagreements with the board about company strategy and declining performance.
Board Chairman John Elkann will lead an interim executive committee while the search for a permanent CEO — expected to conclude in the first half of 2025 — continues.
The Spin
Narrative A
Tavares is finally gone from Stellantis — this is great news for the company, its shareholders, and its supporters, as a change in leadership may be just what's needed to put Stellantis back on track. His European vision failed to achieve success in an American market, and his poor leadership is to blame for recent bad results.
Narrative B
The board will have its work cut out trying to replace Tavares, who despite strong headwinds achieved much in his time as CEO. He embraced the shift to electric vehicles and was successful in spotting areas to cut costs. But at the end of the day, Stellantis may be too large a company for just one person to run.