Carlos Tavares resigns from Stellantis: Green Deal, electrification, and remanufacturing—the legacy he leaves behind

Stellantis announces that the Company’s Board of Directors, under the Chairmanship of John Elkann, accepted Carlos Tavares’ resignation from his role as Chief Executive Officer with immediate effect. The process to appoint the new permanent Chief Executive Officer is well under way, managed by a Special Committee of the Board, and will be concluded within the first half of 2025. Until then, a new Interim Executive Committee, chaired by John Elkann, will be established. Stellantis confirms the guidance it presented to the financial community on October 31, 2024, in respect of its full year 2024 results. Stellantis’ Senior Independent Director, Henri de Castries, commented: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.” Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry. I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”

Tavares, a symbol of experience, determination, and a forward-looking vision 

Tavares has been recognized for his transformative leadership in the automotive industry. His career is marked by a deep understanding of industry dynamics, a relentless drive to achieve results, and a strategic focus on innovation and sustainability. As CEO of Stellantis, he successfully steered the company through critical transitions, such as the push toward electrification and circular economy practices, always maintaining a future-oriented perspective.
Carlos Tavares was a highly effective leader at Stellantis, overseeing its formation through the merger of PSA Group and Fiat Chrysler in 2021. He prioritized financial discipline, implementing cost-cutting measures that boosted profitability. His tenure also faced challenges, including navigating post-pandemic supply chain disruptions, declining sales, and labour tensions. Known for his decisive and detail-oriented approach, he made tough calls like plant closures but maintained Stellantis as a key global automaker.

How did Tavares face up the electric cars in Europe?

As Stellantis CEO, Carlos Tavares faced Europe's shift to electric vehicles by adopting a cautious yet strategic approach. He invested heavily in electrification, unveiling plans for multiple EV models across the company's brands, including Peugeot, Fiat, and Jeep. Stellantis also committed over €30 billion to electrification and software by 2025. However, Tavares was outspoken about regulatory pressures in Europe, criticizing the pace of EV mandates and warning of their economic impact. His leadership ensured Stellantis remained competitive despite significant challenges.

And versus China? 

Carlos Tavares approached China's electric vehicle market with caution, acknowledging its challenges. Stellantis struggled to compete with local Chinese automakers dominating the EV sector. Tavares sought partnerships and joint ventures, such as with Chinese manufacturers, to improve market presence while streamlining operations to address losses. He was critical of China's protectionist policies, suggesting they created an uneven playing field for foreign automakers. Despite these challenges, Stellantis aimed to align its electrification strategy with China's growing EV demand while focusing on other profitable regions.

SUSTAINera, the Stellantis Circular Economy Hub for remanufacturing 

Carlos Tavares has been a strong proponent of the circular economy and the European Green Deal. Under his leadership, Stellantis has integrated sustainable practices into its operations, including a significant focus on circular economy initiatives. Stellantis launched its SUSTAINera Circular Economy Hub in Turin, Italy, as a centre for sustainable manufacturing. This facility employs the "4R strategy"—remanufacture, repair, reuse, and recycle—to extend the life of vehicle components and materials. For example, the hub remanufactures engines, gearboxes, and EV batteries and reconditions vehicles for resale. By 2030, Stellantis aims for its circular economy business to generate over €2 billion in revenues, a testament to its role in decarbonization and resource efficiency. Tavares has expressed caution regarding the EU Green Deal's impact, particularly its regulatory requirements like the Euro 7 emissions standards. While he supports sustainability and innovation, he has warned of the financial burden such regulations could impose on consumers and manufacturers. He advocates for more balanced policies to ensure affordable mobility while transitioning to greener technologies. Overall, Tavares's leadership emphasizes aligning business growth with environmental sustainability, combining aggressive decarbonization goals with economic value creation.

How does Tavares leave Stellantis?

Carlos Tavares leaves Stellantis in a challenging position, marked by declining sales and profits and a significant drop in the company's share price (down 40% this year). His tenure included successes such as cost-cutting and electrification efforts but faced criticism over plant closures, particularly in the UK, and limited progress in key markets like China. Stellantis now confronts mounting competition in the EV sector and operational uncertainties, with an interim leadership team managing the transition until a new CEO is appointed.