Stellantis CEO Carlos Tavares Resigns Immediately in 2025 Amid Company Challenges
Carlos Tavares steps down as Stellantis CEO effective immediately, triggering an interim leadership phase while the automaker plans to appoint a new CEO by mid-2025.
Essential Highlights
- Automotive giant Stellantis announces immediate resignation of CEO Carlos Tavares.
- Interim leadership will be managed by a committee led by board chairman John Elkann.
- Search for a permanent CEO is progressing and expected to conclude in the first half of 2025.
- Stellantis reaffirms its 2024 financial guidance despite recent stock declines.
On Sunday, Stellantis, the parent company of Jeep and Chrysler, confirmed that Carlos Tavares has resigned as CEO with immediate effect. This decision comes as the automaker faces significant market challenges, including a 43% drop in share value this year.
The Netherlands-based company stated that the process to appoint a new permanent CEO is well underway and aims to finalize it by mid-2025. Meanwhile, the company will be overseen by an interim executive committee chaired by John Elkann.
Henri de Castries, senior independent director, noted, "Stellantis’ success has historically depended on strong alignment between shareholders, the Board, and the CEO. Recent differences have led to this leadership change."
Stellantis Maintains 2024 Outlook Amid Restructuring
Despite leadership changes, Stellantis confirmed its 2024 guidance, targeting an adjusted operating income margin between 5.5% and 7.0%, a revision from earlier optimistic double-digit projections. This update contributed to a significant stock price decline in late September.
The company also accelerated its plan to reduce U.S. dealer inventory to no more than 330,000 units by the end of 2024, ahead of the original schedule set for early 2025.
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