Stellantis CEO Carlos Tavares has resigned from the struggling automaker

Carlos Tavares is stepping down as Chief Executive Officer of Stellantis, effective immediately, following a sharp decline in the automaker’s sales. Since i The Wall Street Journal notes, in July, the company reported that its profit in the first half of the year decreased by 48 percent compared to 2023.

The resignation comes a year before Tavares is set to retire in early 2026. In a statement, Stellantis chief independent director Henri de Castries said “different views have emerged” between Tavares and the Stellantis board of directors in recent weeks that led to the decision. . A special board committee led by Stellantis chairman John Elkann will lead the company behind brands such as Vauxhall, Jeep, Fiat, Dodge, and Chrysler until a new CEO is chosen “in the first half of 2025.”

Tavares has led Stellantis since the company was founded in 2021 following the merger of Fiat Chrysler and Peugeot SA. Now the world’s fourth-largest carmaker behind Toyota, Volkswagen, and Hyundai, Stellantis issued a profit warning for its 2024 results in September, citing widespread supply chain problems and increased competition from Chinese automakers.

“Our gratitude goes to Carlos for his years of dedication and the role he played in the creation of Stellantis, in addition to the previous transformation of PSA and Opel, which positions us to become a global leader in our industry,” Elkann said in the announcement. “I look forward to working with our new Interim Executive Committee, supported by all of our Stellantis partners, as we complete the process of appointing our new CEO.”