Leadership Shake-Up at Stellantis Amid Financial Woes

Carlos Tavares, Stellantis' CEO, has resigned following criticism after a profit warning for 2024, with expected losses of up to 10 billion euros due to weak sales in North America. Stellantis aims to appoint a new CEO by mid-2025. John Elkann will manage an interim committee.

Carlos Tavares has resigned from his role as Chief Executive Officer at Stellantis, the company announced on Sunday. This follows strong criticism directed towards Tavares after a profit warning for 2024, which forecasted a cash burn of up to 10 billion euros stemming from sluggish sales and rising inventories in North America.

Stellantis, home to brands like Jeep, Fiat, and Peugeot, has commissioned a search for a new CEO, aiming to complete the process within the first half of 2025. In the interim, a new Executive Committee, led by John Elkann, will oversee operations. The board of Stellantis, chaired by Elkann, accepted Tavares' immediate resignation.

John Elkann, representing Stellantis' main investor, the Agnelli family via investment firm EXOR, will manage the company until a new CEO is appointed. Stellantis shares have significantly decreased, losing about 40% of their value this year, amid these leadership and financial challenges.

(With inputs from agencies.)