Stellantis NV announced that the company’s Board of Directors, chaired by John Elkann, accepted the resignation of Carlos Tavares yesterday from the position of CEO with immediate effect.

In late September 2024, the group’s board of directors began a process of preparing Tavares’ succession, even though his term lasted until 2026. However, in December 2024, Tavares abruptly resigned.

The process to appoint the new permanent CEO will be completed within the first half of 2025. Until then, a new interim executive committee will be appointed, chaired by John Elkann.

Stellantis confirms the situation it presented to the financial community on October 31, 2024, in relation to the results of the full year 2024.

Stellantis Senior Independent Director Henri de Castries commented: “The success of Stellantis since its inception is rooted in a perfect alignment between the reporting shareholders, the Board of Directors and the CEO. However, over the last few weeks different views have emerged which resulted in the Board of Directors and the CEO reaching today’s decision».

Chairman John Elkann said: “We thank Carlos for his dedicated service and the role he played in the creation of Stellantis, and in the previous challenges from PSA and Opel, which have led us to become a global leader in our industry. I look forward to working with our new Interim Executive Committee, with the support of all our colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued development of the company’s strategy in the long-term interest of Stellantis and all its shareholders.”

Stellantis NV is one of the world’s leading automotive companies that aims to provide clean, safe and affordable freedom of movement for all. It is best known for its unique portfolio of iconic and innovative brands, including Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis executes Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious goal of becoming a zero-mobility, clean-carbon technology company by 2038, with a single-digit percentage offset of remaining emissions, while creating added value for all stakeholders .

About Carlos Tavares

Carlos Tavares (born 14 August 1958) is a Portuguese businessman. He is the former CEO of Stellantis, the world’s fourth largest carmaker by sales, created by the merger of Groupe PSA and Fiat Chrysler Automobiles. He was previously the chief operating officer at Renault.

Born in 1958 in Lisbon, his father was an accountant working for a French insurance company and his mother was a French teacher. His passion for cars came at the age of 14 when he discovered car racing, during an open day at the Estoril circuit, near Lisbon.

After studying at the French Lycée Charles-Lepierre in Lisbon, he left his native France at the age of 17 to attend a preparatory course in mathematics at the Lycée Pierre-de-Fermat in Toulouse. He then graduated as an engineer from École Centrale Paris in 1981.

He held different positions in the Renault Group. Tavares started his career at Renault, aged 23, as a test drive engineer in 1981. He was the director of the Renault Mégane II programme.

Between 2004 and 2011, he worked for Nissan, Renault’s partner in the Renault-Nissan Alliance (now Renault-Nissan-Mitsubishi Alliance), first as program manager and then as vice president, in product strategy and product planning. In 2005 he was appointed executive vice president, joining the board of directors. Until 2009, he oversaw Nissan’s presence in North and South America.

By 2011, he had returned to Renault to become chief operating officer, the number two executive under Carlos Ghosn, the chairman and CEO of Renault and Nissan. Tavares had a lot in common with Gon, as they both grew up in Portuguese-speaking environments. Both graduated from the French Grandes Ecoles and both like fast cars. However, on August 15, 2013, Tavares said publicly that he wanted to become a CEO of an automobile company. Tavares was said to be ambitious and looking for more responsibility at Renault, however, Ghosn was just four years older and had no plans to leave anytime soon. Gon reportedly told Tavares to apologize to the staff for his gaffe, and Tavares refused. Instead, he resigned from Renault on 29 August 2013.

Tavares became CEO and chairman of the board of Groupe PSA in 2014, replacing Philippe Varin. During his tenure, he spearheaded cost-cutting measures and increased the company’s market share in China, which restored Groupe PSA’s profitability after years of losses. In 2014, under his leadership, DS Automobiles was established as an independent brand.

As CEO, he garnered praise for PSA’s takeover of Opel and Opel’s return to profitability, as well as PSA’s record sales and profits. However, PSA’s sales in China fell again. In addition, he instigated the merger of PSA with Fiat Chrysler Automobiles.

They were granted to him by the board of directors of Stellantis nearly $40 million in compensation in 2023;. While overseeing major auto brands such as Jeep, Chrysler and Peugeot, Tavares has faced criticism over his huge pay while making statements about the rising cost of products such as food and cars. His salary rose significantly amid talk of inflation, including comments suggesting consumers should expect higher costs, such as more expensive burgers, due to inflationary pressures.

In January 2021, Groupe PSA merged with Fiat Chrysler Automobiles to form Stellantis. Tavares became its first CEO. At Stellantis’ first press conference, Tavares said he planned to save 5 billion euros a year in terms of investment, engine and platform sharing, and development. It also announced that it wanted to relaunch its most fragile brands, which could benefit from new investment.

During the 2022 French presidential election, incumbent Emmanuel Macron and rival candidate Marine Le Pen both called Tavares’ compensation package for 2021 – about €19 million, plus a stock package worth an additional €32 million and long-term compensation about 25 million euro – “shocking”.

As CEO, Tavares has expressed concerns about an “invasion” by Chinese electric vehicle companies which, together with the American carmaker Tesla, offer more affordable models compared to their European competitors. From 2021 to 2022, the European market share of Chinese EV manufacturers doubled to almost 9%.