Stellantis CEO Carlos Tavares abruptly resigned on Sunday after four years at the helm of the automaker due to disagreements with the board.
The company said its board of directors accepted Tavares’ resignation effective immediately. The company, which owns brands such as Chrysler, Jeep, Fiat and Peugeot, said its search for Tavares' permanent replacement is "well under way" and is expected to conclude in the first half of the new year.
In the meantime, a new interim executive committee, led by John Elkann, will be established.
"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," said Henri de Castries, Stellantis’ senior independent director.
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Despite their differences, Chairman John Elkann thanked Tavares for his role helping Stellantis become a "global leader" in the industry. Tavares took over as Fiat Chrysler and Peugeot owner PSA merged to become Stellantis in early 2021. Prior to that, he served as chief operating officer at multinational automobile manufacturer Renault.
But his ousting comes amid a troubling time for the automaker. In September, the company issued a profit warning on its 2024 results after lackluster sales in North America. Stellantis said the global industry backdrop has worsened, leading to a lower market forecast for 2024 compared to earlier predictions. At the same time, competition has gotten tougher due to more industry supply and stronger competition from China.
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To try and turn things around, Stellantis said last month that it was indefinitely laying off more than 1,000 employees at its Jeep assembly plant in Ohio as it focuses on "realigning its U.S. operations to ensure a strong start to 2025."
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The company noted in its third-quarter earnings report, after seeing a 27% decline in net revenues compared with the same period in 2023, that it was in the midst of North American inventory reductions and that U.S. dealer inventory level was "a focus priority."
Reuters contributed to this report.
