Carlos Tavares, the Chief Executive Officer of Stellantis NV, has resigned from his position, the company announced on December 1.
The board of directors has accepted Tavares’ resignation, and a special committee is leading the search for a permanent replacement, expected to be completed by the first half of 2025. This was reported by Interfax.
In the interim, Stellantis will be managed by an executive committee under the leadership of Chairman of the Board John Elkann.
Tavares, who had a five-year contract running until early 2026, led Stellantis since its formation through the merger of Fiat Chrysler and PSA Group in 2021.
Henri de Castries, an independent director at Stellantis, commented that while the company’s success was built on the strong alignment of shareholders, the board, and the CEO, “different points of view” in recent weeks contributed to Tavares’ decision to step down.
Despite the leadership change, Stellantis reaffirmed its 2024 guidance announced on October 31.
The company projects an adjusted operating profit margin of 5.5-7% this year, though it expects negative free cash flow between €5 billion and €10 billion due to product line transitions and inventory reductions.
Stellantis faced a challenging third quarter, with a 27% revenue decline and lower sales. Its shares in Milan have dropped 41% since the start of 2024.
