The CEO of Stellantis abruptly resigns due to differences with the board

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 accepted Tavares’ resignation effective immediately. The company, which includes brands such as Chrysler, Jeep, Fiat and Peugeot, said the search for a permanent replacement for Tavares was “well underway” and was expected to be completed in the first half of the new year.

In the meantime, a new interim executive committee will be established under the leadership of John Elkann.

“The success of Stellantis since its inception has been based on perfect coordination between the reference shareholders, the Board of Directors and the CEO. However, in recent weeks, different views have emerged which have led the Board and CEO to reach today’s decision,” said Henri de Castries, Lead Independent Director of Stellantis.

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Carlos Tavares, CEO of Stellantis, speaks during a press conference at the Fiat automobile plant in Kragujevac, Serbia, July 22, 2024. (Oliver Bunic/Bloomberg via Getty Images / Getty Images)

Despite their differences, Chairman John Elkann thanked Tavares for his role in helping Stellantis become a “global leader” in the industry. Tavares took over the merger of Fiat Chrysler and Peugeot owner PSA to form Stellantis in early 2021. He previously served as Chief Operating Officer at multinational automobile manufacturer Renault.

But his downfall comes at a difficult time for the automaker. In September, the company issued a profit warning on its 2024 results following weak sales in North America. Stellantis said the global industry environment has deteriorated, resulting in a lower market forecast for 2024 compared to previous forecasts. At the same time, competition has become tougher due to the industry’s larger supply and stronger competition from China.

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In a bid to turn things around, Stellantis announced last month that it would indefinitely lay off more than 1,000 Jeep employees Assembly plant in Ohio as it focuses on “realigning its U.S. operations to ensure a strong start to 2025.”

French President Emmanuel Macron talks with Stellantis CEO Carlos Tavares and Stellantis Chairman John Elkann as he sits aboard a Peugeot Inception concept car while visiting the Paris Motor Show at the Paris Expo Porte de on October 1 Visited Versailles in Paris (LUDOVIC MARIN/POOL/AFP via Getty Images))

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The company noted in its third-quarter earnings report that it is in the midst of reducing inventory in North America and that U.S. dealer inventories are “a key priority” after net sales compared to the same period in 2023 decreased by 27%.”

Reuters contributed to this report.