Mon Dec 02 08:04:39 UTC 2024: ## Stellantis CEO Carlos Tavares Resigns Amid Profit Warning and Strategic Disputes
**PARIS** – Stellantis, the automotive giant behind Jeep, Fiat, Peugeot, and Vauxhall, announced the unexpected resignation of its CEO, Carlos Tavares, on Sunday. The company aims to appoint a successor in the first half of 2025.
Tavares, previously lauded as a highly respected industry executive, faced mounting criticism following a profit warning issued earlier this year. The warning projected a potential €10 billion cash burn, primarily attributed to sluggish sales and excess inventory in the North American market.
While the company’s statement cited a mutual agreement on Tavares’ departure, senior independent director Henri de Castries alluded to differing strategic visions between the CEO and the board, suggesting a behind-the-scenes power struggle. The board, chaired by John Elkann of the influential Agnelli family (Stellantis’s top investor), has formed a special committee to oversee the CEO search. An interim executive committee, led by Elkann, will manage the company until a permanent replacement is found.
Tavares’ departure comes as Stellantis grapples with a 40% drop in its share value this year and recent announcements like the planned closure of its Vauxhall van factory in Luton, jeopardizing 1,100 jobs. Although his mandate was originally set to expire in early 2026, the unexpected resignation marks a significant shift for the world’s fourth-largest automaker, formed in 2021 from the merger of Fiat Chrysler and PSA.
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