- Carlos Tavares, who led Stellantis since its formation in 2021, quit the company this week
- According to sources, Tavares was too heavily focused on cost-cutting and making the company green
- This focus reportedly led to the Hemi V-8s and popular models being dropped without their replacements being ready
With Stellantis’ global sales down 17% in the first nine months of the year, its share price dropping more than double that figure over the same period, and no quick turnaround in sight, it wasn’t a huge surprise when the company’s CEO, Carlos Tavares, quit earlier this month.
Stellantis announced on Dec. 1 that Tavares had resigned due to “different views” with the board. This statement came just two months after Stellantis indicated that Tavares would remain CEO until 2026, when his current contract was set to expire.
Citing various anonymous sources, CNBC detailed some of the tensions at Stellantis that led to Tavares’ departure.
According to the sources, Tavares failed to heed feedback from U.S. managers—representing Stellantis’ most profitable market and the one most affected by declining sales. Instead, he reportedly prioritized cost-cutting while pushing to increase margins, which alienated suppliers, factory workers, and dealers, and ultimately turned customers away.
Stellantis brands
The sources also claimed that Tavares’ focus on electric vehicles came at the expense of more affordable, lower-margin gas-powered models and the beloved Hemi line of V-8 engines. This led to the discontinuation of popular models like the Jeep Cherokee and Dodge Challenger and Charger without ready replacements, as well as the phase-out of Hemi engines from most product lines.
“Everybody wanted to keep [the Hemi],” one source said, adding that Tavares remained adamant about phasing the engines out. Currently, Stellantis’ only light vehicles offering a V-8 are the Dodge Durango and Jeep Wrangler.
With Tavares out, Stellantis is working to steady its operations. The company this week announced the rehiring of Tim Kuniskis, who retired in May. Kuniskis, known for spearheading the Hellcat line of performance V-8s, previously led Dodge and Ram and has been brought back to lead Ram.
Stellantis is also searching for a permanent successor for Tavares, a process the company expects to conclude by the first half of 2025. In the meantime, Stellantis will be managed by an interim executive team led by Chairman John Elkann, a member of the Agnelli family, whose Exor holding company owns roughly 14.4% of Stellantis.
