BREAKING: Stellantis CEO Carlos Tavares Will Step Down

Stellantis is preparing for a leadership shakeup as Chief Executive Officer (CEO) Carlos Tavares steps down amid recent profit challenges and declining sales in the United States. According to a Bloomberg report, the company is expected to make an official announcement soon.

Tavares, 66, has been at the helm of Stellantis since its formation in 2021, following the merger of Fiat Chrysler Automobiles (FCA) and PSA Group. Known for his cost-cutting expertise, he initially impressed investors with strategies that reduced vehicle platforms and streamlined operations. However, recent headwinds—including dated product lineups in the U.S., rising inventories, and slipping market shares—have led to mounting pressure from investors, unions, and dealers.

In October, Stellantis confirmed it was exploring potential successors, even as Tavares stated his intention to complete his mandate, which was set to end in early 2026. Now, sources indicate that his responsibilities are likely to be temporarily transferred to an internal committee headed by Stellantis Chairman John Elkann.

This move comes as Stellantis grapples with concerns over brand strength and long-term viability. In the U.S., some dealers have voiced concerns over diminished focus on key brands like Chrysler, Dodge, Jeep®, and Ram. Meanwhile, union representatives have criticized the company’s aggressive cost-cutting measures, citing impacts on quality and delays in model rollouts.

The challenges have also been reflected in the company’s financial performance, with Stellantis issuing a profit warning in September. Over the past 12 months, its shares have declined by 38%, underscoring investor concerns.

Tavares, who rose through the ranks at Renault and gained a reputation for revitalizing struggling automakers, found success in the early days of Stellantis. However, diverging views on the company’s future strategy, reportedly with some board members, appear to have accelerated his decision to exit.

Stellantis now faces a pivotal moment, with Elkann and the board expected to outline the next steps to stabilize operations and rebuild market confidence.