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illuminem summarizes for you the essential news of the day. Read the full piece on Fortune or enjoy below:
🗞️ Driving the news: Stellantis CEO Carlos Tavares has stepped down early following strategic disputes with the board over slumping sales and declining stock performance
• Chairman John Elkann will lead an interim committee until a new CEO is appointed in the first half of 2025
• Tavares's tenure at Stellantis, marked by cost-cutting and brand challenges, ends amidst criticism from unions, dealers, and shareholders
🔭 The context: Tavares, known for turning around struggling automakers, led Stellantis since its 2021 formation through a merger of PSA Group and Fiat ChryslerRecent months saw sliding sales, excess inventory, and weakening market share, prompting profit warnings in September
• This departure reflects broader industry struggles, including flagging EV demand in Europe and economic challenges in China
🌍 Why it matters for the planet: Stellantis, like other automakers, faces pressure to pivot towards sustainable mobility while navigating economic challenges
• Leadership instability could affect its ability to innovate in electric vehicle production and align with global climate goals
⏭️ What's next: Stellantis has reaffirmed its 2024 financial guidance, and interim leadership under John Elkann will steer the company until a permanent CEO is named
• Stakeholders will watch closely for strategic shifts as the automaker addresses market share and inventory issues
💬 One quote: “He won’t be missed in North America—not by the suppliers he fought with, not by the dealers he fought with, and not by car buyers who ignored his vehicles” — Erik Gordon, University of Michigan
📈 One stat: Stellantis shares have dropped 38% over the past 12 months, signaling investor concerns about its market trajectory
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