Stellantis boss steps down amid sliding sales of Alfa Romeo, Jeep, Peugeot and others

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Carlos Tavares, the head of the world's fourth-largest car maker Stellantis, has suddenly resigned overnight after months of embattlement.

Stellantis, the global conglomerate that formed after the merger of French PSA Group and US-based FCA in 2021, counts many big-name brands in its stable such as Ram, Jeep, Fiat, Alfa Romeo, Maserati, Peugeot, Citroen, and Opel.

The company falls behind Toyota, Volkswagen Group, and Hyundai Motor Group in overall worldwide vehicle sales.

Tavaras had originally indicated an early 2026 exit from the company, taking him to five years in the top job, but has now stepped away without naming a successor.

Stellantis states it is currently looking to fill the role, which is expected to be announced early next year, with a new interim executive committee headed by chairman and executive director John Elkann taking the reins until then.

Having been in the top job since Stellantis' formation, the last few years have been troublesome for the company.

Earlier this year, Tavares threatened to shut down or sell off brands in its portfolio that are underperforming, with speculation putting the target on luxury brand Maserati.

However, Tavares was forced to walk back those comments days later, with Stellantis putting out a statement that it has an "unwavering commitment" to the Italian marque.

These comments came after the first half of 2024 sales were down as much as 10 per cent and revenue over that period dropped 14 per cent.

However, the first half of this year saw operating profit for Stellantis down a massive 48 per cent compared to the same period in 2023.

Tavares said at the time: "The Company's performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues."

This year has also seen a stop in production for several Stellantis models, such as the Jeep Grand Cherokee and Fiat 500e electric city car – the latter as supply outstrips demand with global interest in EVs cooling and models from China undercutting competitors on price.

The US Stellantis National Dealer Council also published an open letter to Tavares a few months ago, calling out his poor leadership.

"The market share of your brands has been slashed nearly in half, Stellantis stock price is tumbling, plants are closing, layoffs are rampant, and key executives feeling the company," it said.

"Your own distribution network, your dealer body, has been left in an anaemic and diminished state."

Here in Australia, Stellantis brands are split between various distributors and its factory-backed operations.

Jeep, Alfa Romeo, Fiat, and Leapmotor fall under Stellantis Australia, whereas Peugeot is imported by Inchcape, and Ram is handled by Ateco and locally right-hand-drive converted.

A decision was made to axe Citroen – Australia's longest-running car brand – earlier this year, while Chrysler was pulled from local sale in late 2021.

All Stellantis brands are down in sales this year to the end of October, barring Fiat Professional which is up 27.2 per cent.

The biggest losers in the portfolio are Jeep (down 48.3%), Maserati (down 39.7%), Fiat (down 29.6%), and Peugeot (down 17.9%).

Though Stellantis is a major global player, its cumulative sales in Australia last year secured only a 1.45 per cent market share.

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