ROME - Carlos Tavares, CEO of automotive manufacturing company Stellantis, announced on Dec. 1 his retirement from the role amidst disagreements between himself and company stakeholders. 

 Tavares' resignation from the company, which manufactures brands such as Fiat and Citroen, was announced in a press statement given by Stellantis, and accompanied by a comment from John Elkann, who will temporarily lead the company until the appointment of its new CEO in mid-2025. 

 'We will always be grateful to him for the role he has played in the creation of Stellantis. However, our advisory committee decided, for the good of the company, that the time was right to go our separate ways', Elkann said.

 Whilst the exact reason for Tavares' departure is not made explicit, the Portuguese director's hardline push to shift the company's manufacturing to electric vehicles has caused serious disputes in recent months. 

 Despite the floundering productivity of Italy's automotive industry, where companies have been significantly underperforming and making use of unemployment benefits, Tavares has been adamant that a switch to the unreliable electric vehicle market is the way forward for Stellantis. 

 In September, when the CEO of Renault Luca de Meo appealed for the implementation of EU emission regulations to be delayed from 2025, Tavares firmly opposed this call, arguing that his company was well prepared for a model shift and that all companies had a long time to prepare for the change. 

 Many amongst the Italian government feel that Tavares' leadership did not adequately address the decline of Italy's automotive industry, and especially the challenge of competing with the success of America's manufacturing.

 Feelings are mutual amongst Stellantis shareholders, who felt Tavares was fixed on a model change that proved too risky in an already precarious industry.

 Commenting on the reason for Tavares' resignation, Senior Independent Director Henri de Castries noted in the press release that 'Stellantis' success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision'. 

 Adolfo Urso, Minister for Enterprises and Made in Italy, has expressed his optimism for a new era of Stellantis under the temporary direction of Elkann. 

 'In my meeting with John Elkann the conditions emerged to feel optimistic about a new 'Italy plan' which will place our country at the centre of European automotive development'. (Source: Il Fatto Quotidiano)

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