Stellantis CEO Carlos Tavares Abruptly Resigns Amidst Tumultuous Year

Carlos Tavares has resigned as Stellantis CEO following a year marked by financial warnings and internal disagreements. The company, which has seen a significant loss in market value, plans to find a new CEO by mid-2025. Tavares, known for his outspoken style, faced criticism for financial forecasts.

In a surprising turn of events, Stellantis Chief Executive Carlos Tavares has stepped down just two months after the automotive giant issued a profit warning, marking a challenging year for the company. Stellantis has experienced a 40% decline in value in 2023, a tumultuous period for the maker of Jeep, Fiat, and Peugeot cars.

The resignation comes amidst internal disagreements with major shareholders and the company's board, sparking a widespread reshuffle within Stellantis' top management. Notably, Tavares had been a respected figure in the auto industry, but recent financial forecasts predicting a significant cash burn had put him in the spotlight.

John Elkann, the Agnelli family scion and Chair of Stellantis' Board, has acknowledged Tavares' contributions, particularly his role in the creation of Stellantis through the merger of Fiat Chrysler and PSA. The process of appointing a new CEO is underway, with a conclusion expected by the first half of 2025, while an Interim Executive Committee will guide the company through this transition period.

(With inputs from agencies.)