Carlos Tavares, the CEO of Stellantis, has resigned, effective immediately, as the company grapples with declining sales and a significant financial forecast for 2024. Stellantis, which produces brands like Jeep, Fiat, and Peugeot, announced on Sunday that it would begin the search for a new leader, aiming to appoint a successor by mid-2025.
Challenges and Criticism Leading to Resignation
Tavares, once regarded as one of the most influential figures in the automotive industry, faced mounting pressure after Stellantis issued a profit warning earlier this year. The company predicted a cash burn of up to €10 billion in 2024, primarily due to sluggish sales and excessive inventories in the key North American market. These issues have overshadowed Stellantis’s performance, leading to a sharp decline in its stock value, with shares losing around 40% of their worth this year.
Despite initially planning to retire in 2026, Tavares’ resignation comes after differences emerged between him and the board, particularly with regard to the company’s direction. Stellantis’s board, led by John Elkann, accepted Tavares’ resignation, signaling a shift in leadership during a crucial period for the company.
Search for a New CEO and Company’s Future
A special committee has already begun the process of selecting Tavares’ replacement, with the goal of appointing a permanent CEO in the first half of 2025. In the interim, an executive committee, chaired by Elkann, will oversee the company’s operations. Tavares has led Stellantis since its formation in early 2021, following the merger of Fiat Chrysler and PSA Group, the parent company of Peugeot.
The resignation marks a significant turning point for Stellantis as it works to address its operational challenges and stabilize its financial position amid a volatile market environment.