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2 C
London
Sunday, January 12, 2025

Stellantis CEO Carlos Tavares Steps Down Amid Financial Struggles and Declining Stock

Carlos Tavares has stepped down as the CEO of Stellantis, effective immediately, as the automaker faces mounting challenges including slow sales and a grim financial outlook for 2024. Stellantis, known for brands like Jeep, Fiat, and Peugeot, announced that it aims to appoint a new CEO by mid-2025, with a special committee already overseeing the search for a successor.

Struggles and Leadership Shakeup

Tavares, once celebrated as one of the automotive industry’s most respected leaders, found himself under intense scrutiny after Stellantis issued a profit warning earlier this year. The company projected a €10 billion cash burn in 2024, largely driven by sluggish sales and growing inventories, particularly in the critical North American market. This financial forecast, combined with a 40% drop in Stellantis’s stock price this year, has placed immense pressure on Tavares and the company’s leadership.

The resignation follows a period of disagreement between Tavares and Stellantis’s board, culminating in the decision to part ways. Tavares had been expected to retire in 2026, but the timing of his departure signals a shift in strategy for the company.

Plans for a New Leadership

The Stellantis board, led by chairman John Elkann, has already begun the search for a permanent CEO, with an appointment expected by mid-2025. In the meantime, an interim executive committee will take charge of the company’s day-to-day operations. Tavares, who led Stellantis since its formation in 2021 through the merger of Fiat Chrysler and PSA Group, leaves behind a company navigating a difficult period in the automotive industry.

With Stellantis grappling with financial difficulties, the company is looking for new leadership to guide it through these turbulent times.

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