Stellantis CEO Carlos Tavares is stepping down from his role following a drop in profits and a slowdown in U.S. sales at SUV maker Jeep and Fiat cars, according to sources familiar with the situation.
An announcement from the company was expected this Sunday (1st), according to these sources, who asked not to be identified when discussing confidential information. The company said in October that it had begun a process to find a successor for Tavares, who told reporters he would remain in the role until the end of his term in early 2026.
Tavares’ powers will likely be taken over by an internal committee led by Chairman John Elkann, the sources said. Tavares is leaving his position because his views on the automaker’s future differed from those of some directors, they said. A board meeting is still ongoing and some details may still change, they added.
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Investors, dealers and unions have criticized Tavares in recent months over falling sales, an outdated U.S. vehicle lineup and excessive inventory, resulting in a profit warning in September. Although Tavares promised solutions and moved to replace his finance chief and other executives, market share continued to fall in key markets including France, fueling concerns about the automaker’s long-term prospects.
Stellantis shares are down 38% over the past 12 months.
After rising through the ranks at Renault under cost-cutting advocate Carlos Ghosn, Tavares, 66, long impressed investors with his ability to turn around struggling automakers where others failed.
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He was on track to repeat that success early in his tenure as CEO of Stellantis by reducing the number of vehicle platforms and eliminating jobs. But tensions escalated this year when unions warned that the company’s cost-cutting strategy had led to quality problems and delays in the introduction of key new models. In the US, dealerships accused Tavares of harming brands such as Jeep, Dodge, Ram and Chrysler.
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