DETROIT -- Stellantis CEO Carlos Tavares has unexpectedly resigned from the automaker amid increasingly "different views" between the executive and the board of directors, the company said Sunday.
The world's fourth-largest carmaker said its board accepted Tavares' resignation on Sunday. His departure is effective immediately.
Jeep-maker Stellantis said its process to appoint a new CEO is "well under way" and that it expects to conclude the search during the first half of next year. Until then, the company said it will establish a new interim executive committee led by chairman John Elkann.
"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," Henri de Castries, Stellantis' senior independent director, said in a release.
A Stellantis spokesman declined to disclose any additional information regarding the resignation.
Tavares' resignation comes less than two months after the company announced he would retire at the end of his contract in early 2026. At that time, Stellantis said it planned to name a replacement by the fourth quarter of next year.
Tavares has led Stellantis since its creation through a 2021 merger between Fiat Chrysler Automobiles and PSA Groupe, where he had been board chair since 2014.
The longtime automotive veteran -- a prodigy of former Nissan executive Carlos Ghosn -- was widely heralded in recent years for spearheading the merger and making Stellantis one of the world's most profitable automakers.
But this year, the company's financial results have severely underperformed expectations amid mismanagement of U.S. market -- its prime cash generator -- with a lack of investment in new or updated products, historically high prices and extreme cost-cutting measures.
The company, which also owns brands such as Dodge, Fiat, Chrysler and Peugeot, lowered its annual guidance targets in September ahead of reporting a 27% decline in third-quarter net revenues.
Sales Performance
Stellantis' sales also have struggled this year. Most recently, they reported roughly a 20% decline in year-over-year global vehicles sold during Q3. That included extending yearslong declines during U.S., despite Tavares' attempts to correct what he called "arrogant" mistakes.
U.S.-traded shares are off roughly 43% in 2024 due to these challenges.
Tavares made cost-cutting critical for Stellantis including self-reported €8.4 billion ($9 billion) reductions from merger efforts.
The cost-saving measures reshaped supply chains/operations while reducing head counts across U.S., increasing work lower-cost countries like Brazil/Mexico.
Several current/former executives described cuts as grueling/excessive leading problems within US operations but Taveres pushed back stating:
"When you don't deliver for any reason ... you may want use scapegoat; budget cut easy one; it's wrong," stated July.
Headcount Reduction Impact
Stellanti reduced headcount by15 .5 % (roughly47 ,500 employees) December2019-end2023 according public filings.Additional job cuts involving thousands plant workers US /Italy drew ire unions both countries.< / p > h5 >Union Concerns< / h5 >< br / UAW union called removal several months members face layoffs production cuts.Stellanti 's US dealership network spoke against amid bloated inventories lack financial support sell vehicles .