Stellantis CEO Carlos Tavares, who had planned on retiring in 2026, has tendered his resignation to the struggling automaker’s board of directors, effective immediately. The board accepted and a replacement is expected to be named by the middle of 2025.
Tavares has been the only CEO for Stellantis, which was created in 2021 after the merger between Fiat Chrysler and PSA Group.
Until a new leader takes over, a new interim executive committee helmed by Chairman John Elkann will oversee the Amsterdam-based company, which owns Jeep, Dodge, Chrysler, and Ram.
Tavares had come under fire for slumping sales—down 20% Q3 YOY in the U.S.— and swooning stock price of 40% lower than this time last year (NYSE: STLA). The 66-year-old was also publicly targeted by United Auto Workers President Sean Fain for mass layoffs at the Warren Truck Assembly Plant in Michigan.
It seems the board did not agree with whatever plans Tavares’ had to maintain stability and grow revenue at the world’s fourth-largest automaker by sales in 2023.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” stated Henri de Castries, Stellantis’ senior independent director. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
U.S. commercial sales were on the rise
Sales for the commercial side have been on an upward trajectory. At the start of Q3, Stellantis launched an incentive program to clear MY2024 inventory, and that helped boost Ram’s commercial division sales. Ram 2500 and 3500 sales increased 26% Q3 vs. Q2, while ProMaster van sales shot up 29% over the previous quarter, according to the company.
To attract more commercial, government, and rental fleet customers, Stellantis is offering a three-month no-fee trial of its Fleet Plus Data Pack through its Data-as-a-Service offering, Mobilisights.
The platform provides data on fuel usage and costs, EV charging efficiency, maintenance, and route optimization, as well as vehicle charging status, vehicle range, and charge reimbursement.
The Fleet Plus Data Pack trial allows customers to choose if they’d like to integrate directly with the Mobilisights platform or receive their data through another telematics provider. Currently, the Fleet Plus Data Pack trial is compatible with CerebrumX, Free2move, Geotab, Guidepoint Systems, Motorq, and Samsara.
“Data is the new fuel,” said Eddie Nath, VP and head of Sales for NA, Mobilisights. “We want to show the industry how actionable data insights can build more effective and efficient businesses. We look forward to giving our new customers free trial access to this, so that they, too, can explore the benefits data insights can bring.”
Discord with direction of EVs?
But the overall plan of making electric vehicles account for half of auto and light truck sales by 2030 might not have been on the right track.
Tavares had recently stated that the electric Ram pickup would be delayed until 2025, offering an excuse not likely to sit well with the board or hard-working fleet customers.
“We are just facing a very significant amount of workload,” he offered.
Meanwhile, the other two heads of Detroit’s Big Three, Ford and General Motors, have already come to market with battery electric pickups: Ford’s F-150 Lightning and the Chevrolet Silverado EV.
In an effort to meet carbon neutrality by 2038 and still support ICE and hybrid powertrains, Stellantis had announced a series of flexible platforms the various brands’ engineering departments will use to design and build future vehicles. These include the STLA Small, Medium, Large, and Frame platforms.
The design looks promising, with the Frame, meant for Jeep and Ram vehicles, estimated to offer 500 miles of range and 14,000-lb. towing via its EV version.
“With no direct mechanical path from the engine to the wheels, the generator powers the EDMs to propel the vehicle and recharges the battery as needed, ensuring extended range under load conditions, while benefitting from the torque of the electric engines that bring the vehicle’s dynamics to new heights,” Stellantis explained in a release.
Tavares said the STLA platforms will be “bringing ‘no compromise’ solutions to buyers who may be hesitant on trying their first electric vehicle."
