Peter Lyon
October 12, 2024
Carlos Tavares, the CEO of Stellantis, has announced a significant management change aimed at trying to revitalise the automaker and revealed that he will step down from his No 1 position in early 2026.
Since the PSA Group and FCA merged to establish Stellantis in 2021, the fourth-largest automotive company in the world, the 66-year-old Tavares has served as its leader. However, the group has had difficulties lately, especially in North America, where it has historically been strong.
Tavares has held several influential positions over the last two decades. At 23, he started his career at Renault as a test-driving engineer. From 2004 to 2011, he worked at Nissan, Renault’s partner, first as programme director and then as vice-president, product strategy and product planning. In 2005 Tavares was appointed executive vice-president, joining the board of directors. By 2009, he oversaw Nissan’s presence in North and South America.
By 2011, he moved back to Renault to become COO, the number two executive under Carlos Ghosn, the chairman and chief executive officer of Renault and Nissan at the time. On August 15, 2013, Tavares said publicly that he wanted to become CEO at an automaker. It was said that Tavares was ambitious and sought more responsibilities at Renault, however, Ghosn was only four years older and had no plans to step aside soon. So Tavares resigned from the Renault-Nissan Alliance in 2014 and headed to Group PSA to become its new CEO. During his tenure, he spearheaded cost-cutting measures and increased the company’s market share in China, which returned Groupe PSA back to profitability after several years of losses.
In 2014, under his leadership, DS Automobiles was established as a stand-alone brand. He also was behind the merger of FCA and PSA to form Stellantis with Tavares becoming its first CEO. As a major force in the auto world, he regularly raised concerns of an “invasion” from Chinese EV makers that, along with the America’s Tesla, are offering more affordable models compared to their European competitors.
Stellantis recently lowered its profit outlook and hinted at possible cuts to share dividend payments due to a decline in regional sales and earnings. Additionally, its share price has been declining.
Although Stellantis recently acknowledged that the process of finding Tavares’ replacement had started, he hinted that he might remain after his current contract expires in March 2026.
CARLIST THOUGHTS
Yes, having been the top dog at Stellantis for a decade, we think the time has come for Tavares to step down and hand over the Stellantis reigns to younger blood. He did spearhead cost-cutting measures and had success in China and elsewhere, in addition to his triumphs like the FCA-PSA merger and the DS creation. But of late, he has been criticized for his massive salary and sales in China have been slipping. So his time appears to be up.
