Carlos Tavares has stepped down as the CEO of Stellantis, the global automaker behind brands such as Jeep, Fiat, and Peugeot. The company announced the resignation on Sunday and stated that it aims to appoint a new CEO by the first half of 2025.

Financial Struggles Prompt Leadership Change

Tavares, once a highly respected figure in the automotive industry, faced mounting criticism after Stellantis issued a profit warning for 2024. The company projected a €10 billion cash burn, primarily due to sluggish sales and high inventory levels in North America. Stellantis has seen its stock value drop by approximately 40% this year, adding to the pressure on Tavares’s leadership.

The decision to part ways with Tavares was made after differing views emerged between him and the company’s board, led by John Elkann. Tavares had been expected to retire at the end of his term in 2026, but the board’s decision came much sooner than anticipated.

Search for New Leadership Underway

Stellantis revealed that the process to find a new permanent CEO is already underway, with a special committee managing the search. The company expects to announce the new CEO by mid-2025. In the interim, Elkann will chair an executive committee to guide the company during this transition period.