the star NV CEO Carlos Tavares will step down after falling profits for Jeep SUVs and Fiat cars and weakening US sales, to be led by an interim board led by chairman John Elkann.
A new CEO will be appointed in the first half of 2025, the company said in a statement, after Bloomberg News confirmed a report of Tavares’ resignation earlier Sunday.
Tavares will step down sooner than expected because his views on the automaker’s future differed from those of the board and some shareholders, the statement said. The company confirmed its financial guidance for the year.
Bloomberg News reported in October that Elkann had begun a process to find Tavares’ successor. The CEO later said he would continue until the end of his term in early 2026.
Tavares is one of the industry’s executives under pressure as automakers grapple with a market slowdown in China that has dampened demand for electric vehicles in Europe and the threat of tariffs as it prepares to return to Donald Trump. the white house Nissan The financial director of Motor Co. is also Stephen Ma set to resignsaid people with knowledge of the matter over the weekend.
Tavares, known for his ability to cut costs, had been trying to regain control in recent weeks after setbacks in late September caused the automaker to cut full-year profit and cash flow expectations. European rivals, for example Volkswagen AG is also struggling with weak demand, with the size of Stellantis’ warning causing concern among shareholders.
Shares the slide
Stellantis shares are down 38% over the past 12 months.
Investors, dealers and unions took Tavares to task in recent months for surging sales, a dated U.S. vehicle lineup and bloated inventory, prompting a September earnings warning. While Tavares promised fixes and moved to replace his chief financial officer and other executives, market share continued to decline in key markets, including France, and raised concerns about the automaker’s long-term prospects.
After leveling up in Renault Under SA cost-cutting champion Carlos Ghosn, Tavares, 66, has long impressed investors with his ability to turn around ailing automakers where others have failed.
As CEO of Stellantis he was on track to repeat that success by reducing the number of vehicle platforms and cutting jobs. Tensions have risen in recent months, with uions warning that the company’s cost-cutting course is causing quality problems and delays in rolling out key new models. In the US, dealers accused Tavares of damaging brands such as Jeep, Dodge, Ram and Chrysler.
