Stellantis NV chief executive officer Carlos Tavares’ surprise departure leaves the maker of Jeep SUVs and Peugeot cars without clear leadership at a time of significant upheaval in the industry.
The company’s shares fell as much as 8 percent yesterday, and are down 45 percent this year, after the company said late on Sunday that chairman John Elkann would head an interim committee that is taking over from Tavares until a new CEO is found.
Stellantis is under pressure to halt a sales slide in the US and tackle overcapacities in Europe, where demand for electric vehicles (EVs) is waning just as Chinese manufacturers expand in the region.
Photo: Reuters
Tavares’ departure means the group is without leadership when “critical decisions” need to be made, Jefferies Financial Group Inc analysts led by Philippe Houchois said.
The CEO is leaving sooner than expected as his views on the automaker’s future differed from those of the board and some shareholders, the company said.
While Tavares had run Stellantis since it was formed in 2021 through a merger of PSA Group, parent of Peugeot and Citroen, and Fiat Chrysler, his drastic cost-cutting push in recent months sparked pushback from unions, dealers and managers inside the company.
Tavares is one of several industry executives who have come under pressure as automakers confront a slumping market that is struggling with an economic slowdown in China, flagging demand for EVs in Europe and the threat of tariffs as US president-elect Donald Trump prepares to return to the White House.
Nissan Motor Co chief financial officer Stephen Ma (馬偉誠) is also set to step down, people with knowledge of the matter said over the weekend.
While Tavares pledged fixes and moved to replace his finance chief and other executives, market share continued to decline in key markets, including France, fueling concerns over the automaker’s long-term prospects. The company on Sunday said it plans to name a new CEO in the first half of next year.
Swapping out the CEO and CFO in such a short time creates a “challenge” for investors, JPMorgan Securities PLC analyst Jose Asumendi said.
Investors are unlikely to price in significant earnings improvement for the next year until the management team is reset, he added.
After rising through the ranks at Renault SA under cost-cutting champion Carlos Ghosn, Tavares, 66, long impressed investors with his ability to turn around ailing automakers where others failed.
However, tensions escalated in recent months, with unions warning that the company’s cost-cutting course was leading to quality problems and delays in the rollout of key new models. In the US, dealers accused Tavares of damaging brands such as Jeep, Dodge, Ram and Chrysler.
“He won’t be missed in North America,” said Erik Gordon, professor at the University of Michigan’s Ross School of Business. “Not by the suppliers he fought with. Not by the dealers he fought with. And not by car buyers who ignored his vehicles.”
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