Stellantis CEO Carlos Tavares Resigns Suddenly
Cross-border automobile manufacturer Stellantis Group’s CEO Carlos Tavares, also known as Tang Weishi in Chinese, resigned abruptly on Sunday, December 1st. Just two months prior, the manufacturer of Jeep, Fiat, and Peugeot cars issued a profit warning, causing the company’s market value to plummet by around 40%.
According to Reuters, Stellantis had previously stated that they would seek to find a replacement for the current CEO by the first half of 2025. However, in a statement, the company’s Senior Independent Director Henri de Castries mentioned that disagreements had arisen in recent weeks between major shareholders, the board, and Tang Weishi, leading to the CEO’s resignation.
In a statement released on Sunday, Stellantis Group announced that the resignation of the CEO, accepted by the board members including Chairman John Elkann, would take immediate effect. A new temporary executive committee would be established with Elkann serving as chairman.
Tang Weishi was once regarded as one of the most respected executives in the automotive industry, but a decline in sales in the North American market of Stellantis led to questioning of his strategies after the profit warning in September for the performance in 2024.
This warning triggered extensive personnel changes at the senior level within the group, including the replacement of the Chief Financial Officer and the head of North American operations, although initially Tang Weishi was not implicated.
However, Stellantis later announced that Tang Weishi would not seek another term as CEO and would retire at the end of his current term in early 2026. The selection process for a new CEO was initially scheduled to be completed in the fourth quarter of next year.
In the statement released on Sunday, Elkann expressed gratitude for Tang Weishi’s role in the creation of Stellantis. Stellantis is ranked as the world’s fourth-largest automobile manufacturer based on sales volume.
In the third quarter of this year, the car manufacturer’s vehicle sales in the United States decreased by 17% compared to the same period last year.
Stellantis’ stock price has fallen by about 40% this year, while its American competitors Ford Motor’s stock has decreased by 7% and General Motors’ has increased by 55%.