As director of Stellantis, Carlos Tavares was ready to close several of the group's 14 car brands. On the night of Monday Danish time, he himself went a year too early.
The world's fourth largest car group Stellantis announced last night Danish time that it 'accepts' the resignation of director Carlos Tavares, even though it comes a year early.
The decision comes after a long period of falling sales, large quantities of unsold cars and criticism from both dealers and employees.
The group writes this in a press release .
Carlos Tavares, 66, who has been at the helm of Stellantis since the group's formation in 2021, was ousted after disagreements between him and the board.
According to Henri de Castries, Stellantis' senior independent board member, the firing was due to differences of opinion, which "resulted in the board and the CEO reaching today's decision."
READ ALSO: Germany will force car brands to help the police
Stellantis, which counts 14 car brands, including Citroën, Fiat, Peugeot, Opel, Chrysler and Jeep, is facing major challenges. Sales have fallen significantly, especially in the US, where deliveries of new cars plummeted by 36 percent last quarter.
At the same time, several of the European brands such as Fiat, Citroën and Peugeot are struggling with failing demand. Factories in Italy have for periods been brought to a standstill, while dealers have expressed dissatisfaction with management's handling.
John Elkann, Stellantis' chairman of the board, will temporarily take over the management while a permanent replacement is searched for. Elkann, who comes from the Agnelli family behind Fiat, puts words to the dismissal of Tavares in a press release.
– We would like to thank Carlos Tavares for his many 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, which gave us the springboard to become a global leader in our industry.
Stellantis has been under financial pressure and has already issued two profit warnings this year. Despite this, the group maintains that they expect to achieve a profit of 5.5 percent in 2024.
Before his departure, Carlos Tavares caused a stir by suggesting that Maserati, the maker of luxury sports cars, could face closure.
The coming months are expected to be decisive for Stellantis, who must navigate a difficult market situation, while also finding a new managing director.
How big a golden handshake Carlos Tavares can take with him from the director's chair at Stellantis. However, Tavares' annual salary has also been heavily debated. Because even though Stellantis was in deep crisis, the Portuguese got 275 million kroner in salary every single year.
Enough to make him one of the best-paid CEOs in the entire automotive industry. Tavares had also promised to retire next year, when his contract was about to expire.
