Jeep, Fiat and Peugeot car maker Stellantis announced on Sunday that Carlos Tavares will step down as chief executive and aim to find a new leader in the first half of next year.
Tavares, previously considered one of the auto industry's most respected executives, said earlier this year that Stellantis issued a profit warning for its 2024 performance, largely due to weak sales that could generate up to 10 billion yen. It faced strong criticism for including the outlook for the euro's cash burn. And inventories are ballooning in the major North American market.
“Today, our Board of Directors, under the chairmanship of John Elkann, accepted Carlos Tavares' resignation as Chief Executive Officer, effective immediately,” Stellantis said. stated in a statement.
Stellantis said the process to appoint a new permanent chief executive officer was managed by a special committee of the board of directors and was proceeding smoothly. Appointments will be made in the first half of 2025, it said, adding that an interim executive committee would be established, chaired by Elkann.
Tavares was expected to retire at the end of his term in early 2026.
“Stellantis’ success since its inception has been rooted in perfect collaboration between our benchmark shareholders, the Board of Directors, and the CEO. However, in recent weeks, divergent views have emerged, and the Board and CEO have reached today’s decision. '' said Henri de Castries, the company's senior independent director.
Tavares has led Stellantis, the world's fourth-largest carmaker by sales, since it was formed in early 2021 through the merger of Fiat Chrysler and Peugeot owner PSA.
Stellantis' main investors are the Agnelli family, the founders of Fiat, through the investment firm Exor. Elkann, a scion of the Agnelli family, is also Exor's chief executive officer.
Stellantis stock has lost about 40% of its value this year.
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Stellantis last week announced plans to close its Vauxhall van factory in Luton, putting 1,100 jobs at risk of being cut or relocated.
