Carlos Tavares, one of the leaders in the Stellantis merger and its first CEO, has unexpectedly stepped down. It comes just two months after news emerged that the often irascible leader plans to play out his five-year contract, which expires in early 2026.
The sudden departure raises some doubts, especially given the company's current troubles. Stellantis is facing a perfect storm: plummeting sales of major US brands (Jeep, Ram, Dodge, Chrysler), shutdowns due to oversupply and a disgruntled dealer network.
Tavares himself does not hesitate to point out the company's problems. He cited poor marketing and quality control problems at the Ram pickup plant in Sterling Heights as the reason behind Maserati's slow sales.
The company appears prepared for Tavares' departure, with an interim executive committee headed by chairman John Elkann taking over while a search is made for a permanent successor in the first half of 2025.
Meanwhile, the search for a plan to change the situation is intensifying. Inventories are bloated, production needs serious downsizing, and the US dealer network feels alienated.
This is not the only change in management at Stellantis. Recent months have seen a shake-up in the sports car division, with Santo Ficilli taking over from Alfa Romeo and Maserati.
Will the new leadership address the concerns that Tavares himself raised? Only time will tell if Stellantis can break out of this slump and get back on the road to success.