Tavares Admits Stellantis Boardroom Fallout Forced 'Amicable' Resignation

Former Stellantis CEO Carlos Tavares confirms that disagreements over future business strategies with the board of directors forced him to hand in his resignation.

The dispute with other board executives was first officially outlined by the group’s chief financial officer, Doug Osterman, in a fireside chat as part of Goldman Sachs’ 16th Annual Industrials & Autos Week earlier this month.

In an interview with Portuguese newspaper Expresso, his first since quitting the auto group, Tavares admits the radically different approach to fixing the automaker’s current challenges caused the rift between executives but that the split had been “amicable.”

While not going into details about the differing views, he said his decision to quit had been made in agreement with Stellantis Chairman John Elkann.

Tavares tells the newspaper that his main concern had been to “protect the company so that a difference in points of view wouldn't create the risk of misaligning the company.”

He adds: “A company that has 250,000 employees, revenues of €190 billion ($200 billion), 15 brands that it sells all over the world, is not a company that can be managed with a lack of alignment, which immediately has an impact on strategic management.”

When asked if he felt wounded by having to resign he said, “No, not at all,” and said he would have acted the same way in that situation again.

The automaker group saw its revenues and profits slump dramatically this year compared to 2023, caught between the mistakes of over-production of U.S.-market vehicles resulting in large discounts by dealers to cut inventory; declining sales in Europe of what industry analysts describe as an aging model lineup; and increased competition from inexpensive battery-electric vehicles imported from China.

Concluding the interview, Tavares describes the current challenges in the automotive industry as being part of the beginning of a “Darwinian” period. He adds: “When you're facing a storm, you have to steer the boat according to the waves. You can't have a discussion about the best way to face them.”