Stellantis CEO replaced as profits decline
Carlos Tavares, the chief executive of Stellantis, has resigned from his position “with immediate effect,” the auto giant announced on Sunday. This move comes amidst differences in how to address the company’s profit slump.
Stellantis, a conglomerate made up of 14 brands including Fiat, Peugeot-Citroen, and Jeep, accepted the resignation of the 66-year-old Portuguese executive. According to a statement from the company, the board and Tavares reached this decision after differing views emerged in recent weeks, although specific details were not provided.
The group had already begun the search for a successor to Tavares, whose current five-year contract was set to end in early 2026. The process to appoint a new permanent CEO is underway and is expected to be completed in the first half of 2025. In the meantime, an interim executive committee led by chairman John Elkann will oversee the company’s operations.
Stellantis has faced challenges in recent months, with delayed model launches due to electrical problems and declining sales in North America, its main profit source. These difficulties have been attributed to competition from China and the shift to electric cars, which have impacted the entire auto industry.
Tavares, known for his cost-cutting strategies, previously served as the chief executive of the Peugeot-Citroen (PSA) group before taking on the role of CEO at Stellantis following the merger of PSA with Fiat-Chrysler in 2021. While the company initially saw impressive profits and a focus on electric and hybrid vehicles, challenges such as chip shortages and pricing pressures have since emerged.
Despite these obstacles, Stellantis remains committed to addressing its financial performance and stability. The company has adjusted its profit forecast and aims to maintain profit margins between 5.5% and 7.0% of turnover. Production changes, including plant closures and job losses, have been part of the company’s efforts to overcome these challenges in the coming months.
