Stellantis CEO Tavares Resigns Amidst Financial Struggles

Carlos Tavares abruptly resigned as Stellantis CEO following disagreements with major shareholders and significant financial issues in the company. Stellantis, which has seen a 40% drop in share value this year, is already seeking a replacement. The automaker faces a challenging market environment in North America.

Carlos Tavares, Chief Executive of Stellantis, resigned unexpectedly on Sunday due to differing perspectives with the board and major shareholders following a profit warning. The automaker, known for brands like Jeep, Fiat, and Peugeot, is now seeking a new CEO by mid-2025 as it grapples with financial difficulties.

Tavares, who was once highly regarded in the industry, faced criticism after the profit warning which forecasted a substantial cash burn mainly caused by sluggish sales in North America. Though initial management changes spared him, Tavares had already announced he would retire at the end of his term in early 2026.

Under John Elkann's chairmanship, Stellantis' board accepted Tavares' resignation, thanking him for his role in forming Stellantis. The automaker has suffered a significant drop in share value, with inventory challenges and reduced sales adversely impacting its North American operations.

(With inputs from agencies.)