WionDrive News Desk 
Carlos Tavares, CEO of Stellantis, stepped down abruptly on Sunday, marking a dramatic fall from grace for the outspoken executive who once had the full backing of the automaker’s board. Sources close to the matter revealed that disagreements over Tavares’ ambitious targets and leadership style led to his ouster, just weeks after receiving unanimous board support.
Tavares’ aggressive goals for cost cuts and sales growth, coupled with his contentious relationships with suppliers, dealers, and unions, alarmed Stellantis board members representing key stakeholders, including Exor, the Peugeot family, and the French government.
“Something broke in November,” a source told Reuters, highlighting tensions that escalated after Tavares publicly criticised Stellantis’ U.S. management for declining sales during the Paris Auto Show in October.
Despite this, Tavares retained the board’s support until internal frustrations reached a boiling point last month. Board members reportedly pressed him for clarity on his strategies, only to be met with resistance. “Tavares’ reaction was: ‘You do not interfere with my job,’” said a source, adding that the CEO’s inflexible approach alienated both internal and external stakeholders.
Tavares, whose compensation reached 36.5 million euros earlier this year, had previously been celebrated for delivering double-digit profit margins. However, recent supply chain disruptions, dealer dissatisfaction, and declining market share in Europe and the U.S. eroded confidence in his leadership. Stellantis also issued a major profit warning in September, further tarnishing his reputation.
The board’s decision to remove Tavares, despite having no immediate successor, underscores the urgency of stabilising the automaker. Stellantis faces mounting challenges, including bloated inventories, competition from Chinese EV makers, stricter European emissions standards, and evolving U.S. trade policies under President-elect Donald Trump.
Chairman John Elkann now leads the search for a new CEO tasked with navigating a daunting to-do list for the global automaker, which oversees 14 brands, including Jeep, Ram, and Peugeot. Stellantis shares have plunged 43% this year, with critics pointing to pricing strategies that have alienated customers in its key markets.
“You cannot make enemies with everybody,” a source summarised, reflecting the mounting pressures that toppled Tavares from his once-unshakable position.
