Carlos TavaresCEO of Stellantisresigned with immediate effect, marking a major turning point at the top of the automotive group. The decision was accepted during an extraordinary meeting of the board of directors, chaired by John Elkannwho will now take on a key role in the temporary leadership of the company.
Stellantis announced that a special committee tasked with selecting a new permanent CEO, a process expected to be completed by first half of 2025. Meanwhile, a new executive committee chaired by Elkann will be established, which will coordinate the company’s strategic activities.
Stable financial outlook, despite difficulties
Despite the change at the top, Stellantis reiterated the financial guidance for the entire year 2024, communicated on 31 October. However, the context remains complex: the group recorded a reduction in deliveries of more than 200,000 vehicles in the second half of the year, double compared to previous estimates. Adjusted operating margin is now expected between 5.5% and 7%a significant decline from the double-digit margin target. Furthermore, industrial free cash flow, previously expected to be positive, has been revised downwards with an estimated loss of between 5 and 10 billion euros.
Elkann: “Grateful to Tavares, move forward with the strategy”
In an official statement, John Elkann acknowledged Tavares’ contribution in shaping Stellantis and leading the relaunches of PSA And Opel:
“We are grateful to Carlos for his continued commitment over the years and for the crucial role he played in the creation of Stellantis. I intend to immediately get to work with our new interim executive committee to ensure the implementation of the corporate strategy in the best interests long-term outcome of the company and its stakeholders.”
Future challenges and opportunities
Tavares’ resignation comes at a delicate moment for Stellantis, which finds itself managing the transition towards electric mobility and the challenges linked to the contraction in global demand. The leadership of Elkann, already a central figure in the alliance between FCA and PSA, will be put to the test in maintaining the group’s strategic course and regaining investor confidence.
With the automotive market becoming increasingly competitive, the next decisions will be crucial to position Stellantis as a global leader in the industry.