Carlos Tavares, the former CEO of Stellantis, was described as “arrogant” by several former or current leaders and U.S. employees. Tavares’ focus on cost-cutting and his goal of achieving double-digit profit margins under his “Dare Forward 2030” business plan led to the company’s current situation, ultimately resulting in his resignation.
Sources described Tavares as being fixated on near-term cost reductions and profits, to the detriment of the business, products, employees, and relationships with suppliers, unions, and dealers. They said he was dismissive of input from U.S. executives and lack of support for new products and sales.
Investors turned against Tavares, with U.S.-traded shares of Stellantis off 43% in 2024, compared to General Motors’ 55% gain and Ford Motor’s 9% decline.
Tavares’ departure came after the company’s board decided to terminate his contract. He had been the CEO of Stellantis since 2021, after leading a merger between PSA Groupe and Fiat Chrysler.
Stellantis has established an interim executive committee led by Chairman John Elkann, and expects to name a successor in the first half of 2025. Tavares’ departure has led to a renewed focus on rebuilding relations with suppliers, hourly and salaried U.S. employees, dealers, and politicians.
The company is now working to correct the mistakes of the past, including the mismanagement of U.S. operations, which led to bloated new vehicle inventories, plant production cuts, and headcount reductions. Stellantis is also trying to restore trust with suppliers, who were affected by the company’s cost-cutting measures.