Official: Carlos Tavares resigned, leaving Elkann in charge

Known for his severe cost-cutting, Carlos Tavares, Stellantis’ first chief executive officer, is apparently going to leave office earlier than expected. Tavares had told reporters he would remain through 2026, and the company only announced the start of its search for a replacement in October. Less than one hour ago, Bloomberg’s Albertina Torsoli, Daniele Lepido, and Tommaso Ebhardt reported that Tavares will be leaving earlier; and in response, minutes ago, Stellantis announced Tavares’ resignation.

The Board plans to announce an official replacement within the next seven months. Until then, a new interim executive committee will be led by Fiat heir John  Elkann, which is at best mixed news for former-Chrysler followers.

Key projects, such as the 800V STLA Large vehicles, have been delayed due to problems arising from Tavares’ “low-cost-country” engineering preferences. Engineers in Auburn Hills, Turin, and Poissy have been put onto global teams, with little or no training, fighting time-zone, cultural, and language barriers as well as the inexperience of many new hires. In addition, as projects were tested in different countries, coordination costs have risen while lack of progress has been harder to find until it is too late.

Whether Elkann changes this type of priority and leadership is unknown, but it is likely that vanity projects such as re-creating Alfa Romeo will continue to be a priority. In the last few years, Chrysler and Dodge have been de-emphasized, but two new vehicles are reportedly planned for Chrysler in 2026.