Carlos Tavares Resigns as most of Stellantis’ brands struggle in key markets.
In a stunning turn of events, Carlos Tavares has stepped down as CEO of Stellantis, effective immediately. Tavares, who played a pivotal role in forming the world’s fourth-largest automaker through the merger of FCA and PSA, leaves the company amid turbulent times. His resignation raises questions about the future of Stellantis globally.
A Leadership Void in Challenging Times
The departure of Tavares, who was initially contracted to stay until 2026, comes as Stellantis grapples with significant issues. These include sluggish sales, inventory surpluses, and quality concerns across several key markets. Jeep, Ram, Dodge, and Chrysler have seen steep declines in the US, with drops ranging from 8% to 24% in sales. Moreover, the luxury Maserati brand and mass-market Fiat vehicles have struggled to meet demand, despite ambitious launches like the Tonale SUV under Alfa Romeo.
While John Elkann, Stellantis Chairman, will lead an interim executive committee until a new CEO is appointed in 2025, the sudden exit of Tavares adds uncertainty. His vocal criticism of internal inefficiencies, marketing shortcomings, and declining brand equity may have accelerated this move.
Stellantis Malaysia: A Ripple Effect?
For Malaysia, where Stellantis manages just Peugeot and Leapmotor and has an ambitious but realistic plan. The company has recently been ramping up local efforts, including assembling Peugeot models at its Gurun plant in Kedah and announced plans for a regional parts centre to be based in Malaysia. It’ll be interesting to see how this change of leadership changes things for things here.
Challenges Ahead for Stellantis’ Global Strategy
Globally, Stellantis faces mounting pressure to stabilize its operations. Recent production stoppages impacted several key models, including the Fiat 500e, Jeep Grand Cherokee, and Maserati GranTurismo. Moreover, dissatisfaction among US dealers has highlighted underlying distribution and operational issues.
Carlos Tavares’ departure underscores the urgent need for Stellantis to redefine its strategy. Whether this involves trimming its portfolio of 14 brands or doubling down on electrification and regional markets like Malaysia remains to be seen.
