The CEO of Stellantis, Carlos Tavares resigned, effective immediately today, December 1st. In October of this year, Stellantis announced it had begun the search for a successor to CEO Tavares who was planning to step down sometime in 2026, but tensions were already rising between the board and Tavares after Stellantis issued profit warning guidance in September on its 2024 full-year results.
A source inside the company said that the tensions between Tavares and the board stemmed from differing views on the direction of the company. The board was concerned that Tavares was moving too fast and focusing on near-term solutions rather than long term company health.
Stellantis has been struggling with inventory mismatched to customer demands and a failure to move prior year models off lots. Overproduction of high-priced models has let to a glut of inventory at dealerships with more than 110 days of inventory of Ram Trucks and Jeep Grand Wagoneers, significantly higher numbers than crosstown competitors, Ford and General Motors.
Tavares made a name for himself by helping turn around French automaker Renault under the leadership of Carlos Ghosen. He later led Peugeot parent PSA through an acquisition of Opel from General Motors and later the PSA merger with FCA to form Stellantis in 2021.
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