Amsterdam-based Stellantis’ CEO Carlos Tavares steps down with immediate effect; shares decline over 7%

Amsterdam-based Stellantis, an automaker company, recently announced that its CEO Carlos Tavares has resigned from his position.

The Company’s Board of Directors, under the Chairmanship of John Elkann, accepted the resignation with immediate effect.

Chairman John Elkann says, “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry.”

“I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders,” adds Elkann.

Stellantis’ shares declined 7%

The shares of Paris-listed Stellantis declined over 7 per cent on Monday after the announcement.

The announcement comes two months after the company (owner of brands like Chrysler, Vauxhall, Jeep, Fiat, and Peugeot) issued a profit warning. Notably, the company has lost around 40 per cent of its value this year, reports Reuter.

The forecast predicted cash burn of up to €10B ($10.6B) mainly because of slow sales and rising inventory in North America, the group’s main profit source, adds Reuter.

The company’s Senior Independent Director, Henri de Castries, comments, “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

Search for a new CEO

The process to appoint the new permanent Chief Executive Officer is underway, managed by a Special Committee of the Board, and will be concluded within H1 2025.

Until then, a new Interim Executive Committee, chaired by John Elkann, will be established.