Carlos Tavares announced his resignation as CEO of Stellantis on 1 December 2024, ending a leadership that left behind more shadows than lights. Initially celebrated as a visionary leader, his management proved to be an amalgam of short-sighted strategies, internal conflicts and an inability to adapt to the dynamics of a rapidly changing automotive market.

The difficult transition to electric

Although Stellantis has invested billions in the transition to electric vehicles, under Tavares the company has fallen behind its competitors. The models launched failed to compete in terms of innovation, price and range, allowing Chinese manufacturers like BYD and industry leaders like Tesla to gain ground. Instead of leading Stellantis into the future, Tavares has anchored the company to a conservative and inadequate vision for the challenges of sustainable mobility.

Darwinian’ personnel management

Tavares’ name is inextricably linked to a management described by Carlo Calenda as ‘Darwinian‘. Cost cuts, plant closures and decisions that sacrificed workers on the altar of short-term profitability marked his tenure. The closure of the Vauxhall plant in Luton and the loss of thousands of jobs in Europe are emblematic examples of this corporate philosophy, which has sown resentment among employees and weakened the social fabric of the communities involved.

The decline in financial performance

Tavares’ resignation comes at a particularly difficult time for Stellantis. In the third quarter of 2024, the group reported a 27% drop in revenue to EUR 33 billion. Consolidated deliveries were down 20 per cent year-on-year, with a drop of 17 per cent in Europe and 36 per cent in North America. The slump in sales had a significant impact on the company’s financial results. Lower volumes accounted for 9.7 billion of the 12 billion in lost revenue. Stellantis attributed these negative results to‘production gaps on several models for global product transition, planned inventory reductions in North America, and difficulties in a challenging European market‘.

Disagreements with Elkann and leadership crisis

Tavares’ exit from the scene comes sooner than expected. The company had stated in October that it had started a process to find a successor, but the manager himself had said that he would stay on until the end of his term in early 2026. According to rumours, Tavares left his position because of disagreements with some executives over the future of the carmaker. This interpretation was confirmed by Henri de Castries, senior independent director of Stellantis, who said:‘The success of Stellantis since its creation has been based on a perfect alignment between the key shareholders, the board and the CEO. However, in recent weeks different views have emerged that have led the Board and the CEO to today’s decision‘.

Why we will not miss Tavares

The outgoing Ceo leaves behind a legacy of wasted opportunities, fractured relations with workers and a company that now faces enormous challenges to regain credibility in the market. His leadership, focused on cutbacks and preserving the past, has failed to meet the challenges of an industry that demands adaptability, sustainability and innovation.