Stellantis CEO Carlos Tavares resigned abruptly on Sunday, following a profit warning in September and a significant drop in the company’s stock value. The automaker, which owns brands like Jeep, Fiat, and Peugeot, stated that it would search for a new CEO in the first half of 2025. Senior Independent Director Henri de Castries attributed Tavares’ departure to differing views between the board, major shareholders, and Tavares over the past few weeks.
Tavares had been highly regarded in the auto industry but faced criticism after Stellantis issued a profit warning, predicting a cash burn of up to 10 billion euros due to sluggish North American sales and bloated inventories. This led to significant management changes, though Tavares initially stayed on. In a surprising turn, the company announced he would retire at the end of his mandate in early 2026, with the CEO search expected to be completed by late 2025.
Stellantis shares have fallen by 40% this year, contrasting with the more stable performances of U.S. rivals Ford and General Motors. Dealers have expressed frustration over poor sales and inventory buildup, particularly in the U.S. market. A source noted tensions grew between Tavares and the board, with some feeling his focus on short-term fixes was not in the company’s long-term interest. Analysts suggest new leadership is needed to guide Stellantis’ future.
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