Carlos Tavares Resigns as Stellantis CEO

LISBON (Reuters) – Carlos Tavares, who abruptly resigned as CEO of carmaker Stellantis (NYSE:STLA) on Dec. 1, stated his "amicable" departure was due to strategic disagreements with the board, in an interview with the Portuguese newspaper, Expresso, published late Thursday.

Tavares refrained from detailing the differences but mentioned that the decision to leave was mutual with chairman John Elkann. Sources informed Reuters that his sudden ouster was prompted by targets he set that some board members deemed unrealistic or detrimental.

"The main concern had been to protect the company so that a difference in points of view wouldn't create the risk of misaligning the company," Tavares explained. He emphasized, "A company that has 250,000 employees, revenues of 190 billion euros, and 15 brands is not a company that can be managed without alignment, as it impacts strategic management."

When asked if he felt hurt by his departure, Tavares responded, "No, not at all," asserting he would take the same actions if given a second chance.

Previously regarded as a respected leader in the auto industry, Tavares faced scrutiny following declining sales in North America, which led Stellantis to issue a profit warning for its 2024 results in September. Dealers and industry experts believe that Stellantis under Tavares' leadership had priced itself out of the market in both the U.S. and Europe.

In the interview – his first since resigning – Tavares characterized the current moment in the auto industry as the start of a "Darwinian" period, stating, "When you're facing a storm, you have to steer the boat according to the waves. You can't have a discussion about the best way to face them."