Carlos Tavares unexpectedly resigns as CEO of Stellantis

Carlos Tavares, who until now held the position of CEO of Stellantis, has unexpectedly resigned with immediate effect, surprising both the industry and the business community itself. The departure of the Portuguese executive, originally scheduled for 2026, has been accepted by the group's Board of Directors. While his successor is being sought, it will be John Elkann, the company's president, who will temporarily take over as head of an interim executive committee.

Tavares' resignation, a key leader in the creation of Stellantis in 2021 following the merger of PSA and Fiat Chrysler, is accompanied by internal tensions at the highest levels of management. In addition, the group's recent financial results have not been favourable, especially in North America.

A difficult period for Stellantis

The global automotive industry is undergoing a moment of transformation towards electrification, and Stellantis has not been immune to the challenges of this change. During 2024, the group's operating margins have fallen significantly, particularly affecting key markets such as North AmericaSales in this region, traditionally one of the most profitable for the company, fell by 18% during the first half of the year, affecting its ability to sell a significant stock of vehicles.

As for Europe, the trade tensions with China have also impacted the group's strategic plans. The European Union's decision to impose tariffs on electric vehicles manufactured in China has slowed down Stellantis' collaboration with Chinese companies such as CATL for key projects, such as a battery gigafactory that could have been installed in Spain.

Key projects in Spain in the air

Tavares' resignation leaves two major projects destined for Spain up in the air. On the one hand, the possible allocation of the production of new electric models of the platform STLA Small for plants of Vigo y ZaragozaOn the other hand, the construction of a gigafactory in Figueruelas, Zaragoza, which would be one of the largest in Europe and could involve a joint investment of about 4.000 millones de euros.

The former CEO had conducted intense negotiations with the Spanish government to ensure the competitiveness of these factories and secure a significant level of public aid. In fact, he met with President Pedro Sánchez just a few days ago at the Moncloa.

A management style that made a difference

Tavares' management at the head of Stellantis (and PSA, previously) has been marked by his firm commitment to cost reduction and Maximizing synergiesThis approach allowed him to recover PSA from its delicate financial situation in 2014, lead the acquisition of Opel and consolidate the merger with Fiat Chrysler.

However, it was not without political clashes. In French e Italy, Tavares encountered reluctance regarding strategic decisions that favoured Spanish plants over those of his countries of origin. Despite the criticism, he always defended the importance of economic viability as a key factor for business decisions.

Tavares' legacy and the future of Stellantis

The search for a new leader for Stellantis has already begun, with a promise to announce a new permanent CEO in the first half of 2025. For now, John Elkann He has assured that the interim executive committee will work to ensure the continuity of the company's strategy, with a long-term vision that benefits shareholders and employees. However, it remains to be seen how this transition will affect the strategic projects that Tavares had initiated, especially in key markets such as Spain.

Images – Stellantis