Shakeup at Stellantis: CEO Exit Sparks Strategic Refocus

Carlos Tavares, former Stellantis CEO, resigned after his salary dropped 37% amid conflicts over cost-cutting strategies. His focus on pricing led to declining U.S. sales. Stellantis now cautiously strategizes for 2025, with Chairman John Elkann evaluating the future of its 14 brands.

Carlos Tavares, who formerly led global automaker Stellantis as CEO, observed a significant 37% drop in his compensation last year, amounting to 23 million euros ($23.91 million) prior to his unexpected resignation in December.

The departure followed tensions with the Chrysler and Fiat owner's board due to Tavares' concentration on immediate cost-reduction strategies at the expense of long-term objectives. His aggressive pricing actions were partly responsible for declining U.S. sales, an issue the company continues to address.

In the wake of these developments, Stellantis projected a cautious stance for 2025. Chairman John Elkann is in the process of interviewing potential CEO candidates, with a focus on determining the viability of the automaker's 14 brands.

(With inputs from agencies.)