Carlos Tavares, the first and only CEO of Stellantis, has abruptly stepped down, effective immediately. The announcement comes less than two months after the company publicly stated that Tavares, whose original contract was set to expire in early 2026, would continue at the helm. Now, the automotive giant is left navigating a leadership void during one of the most challenging periods in its history.
While the company appears prepared for this change—citing that the search for a replacement is already “well underway”—the timing raises questions. Until a successor is named in the first half of 2025, Stellantis Chairman John Elkann will lead an interim executive committee tasked with steering the ship through turbulent waters.
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Tavares’ departure caps off a tenure marked by both significant achievements and escalating struggles. His hands-on leadership style and bold decision-making helped establish Stellantis as a major player following the merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (PSA) in 2021. However, mounting issues, including slumping sales, quality concerns, and criticism from dealers, have cast a shadow over his later years in the role.
Sales figures paint a grim picture. In the United States, Jeep sales have dropped 8% through the third quarter of 2023, while Ram and Dodge saw declines of 24%, and Chrysler plunged 21%. Even Alfa Romeo, buoyed by the recent launch of the Tonale, reported a 10% drop in sales. Stellantis’ struggles extend beyond the U.S. as global market share for many of its key brands continues to dwindle. Dealers have grown increasingly vocal about the company’s direction, with the Stellantis National Dealer Council penning an open letter to Tavares in September. The letter criticized everything from factory closures and layoffs to declining market share, accusing the company of letting its iconic brands “rapidly degrade.”
Adding fuel to the fire are ongoing production challenges. Weak demand has forced the company to halt manufacturing on several models, including the Fiat 500e, Jeep Grand Cherokee, Dodge Durango, and Maserati GranTurismo. Meanwhile, excess inventory continues to plague Stellantis, as the company struggles to match production levels with consumer interest. Tavares himself had publicly expressed frustration with the situation, criticizing Maserati’s marketing strategy and quality control issues at the Sterling Heights plant, where a high number of Ram trucks require repairs before leaving the factory.
The leadership shakeup comes amid broader restructuring within Stellantis’ executive ranks. In recent months, Santo Ficili was appointed CEO of Maserati and Alfa Romeo, replacing Davide Grasso and Jean-Philippe Imparato. These changes highlight the urgency of turning around struggling brands that have failed to meet expectations. Just weeks before stepping down, Tavares warned that underperforming divisions could face extinction or be sold off if they don’t demonstrate significant improvement in the coming years.
Despite these challenges, Stellantis has committed to financing all 14 of its brands through 2026, offering struggling names like Chrysler and Lancia a temporary lifeline. However, this financial support comes with an unspoken deadline, making the task of revitalizing these brands even more pressing.
As Stellantis searches for a new leader, the automotive industry is watching closely. The next CEO will face a monumental task: revitalizing a sprawling portfolio, resolving operational inefficiencies, and regaining the confidence of investors, dealers, and consumers. With electrification, market competition, and global economic pressures looming large, the stakes couldn’t be higher.
For now, John Elkann’s interim leadership will serve as a bridge to what could be a defining moment for Stellantis. Whether the automaker can regain its footing—or face a deeper decline—rests on the shoulders of the next CEO and their ability to lead the company through an era of immense change.
