MILAN (Reuters) -Stellantis Chief Executive Carlos Tavares has resigned, the maker of Jeep, Fiat (BIT:) and Puegeot cars said on Sunday, adding it aimed to find a new head in the first half of this year.
Previously regarded as one of the most respected executives in the auto industry, Tavares came under strong criticism earlier this year after Stellantis (NYSE:) issued a profit warning on its 2024 results, including a forecast for a cash burn of up to 10 billion euros, mostly blaming slow sales and bloating inventories in its key North American market.
“The Company’s Board of Directors, under the Chairmanship of John Elkann, accepted Carlos Tavares’ resignation today from his role as Chief Executive Officer with immediate effect,” Stellantis said in a statement.
Stellantis said the process to appoint the new permanent CEO was well under way, managed by a Special Committee of the Board.
The process will be concluded within the first half of 2025, it said, adding that a new Interim Executive Committee, chaired by Elkann, would be established.
Tavares was previously expected to retire at the end of his mandate, in early 2026.
Tavares has led Stellantis, the world’s fourth largest carmaker by sales, since its creation in early 2021, through the merger of Fiat Chrysler and Peugeot (OTC:) owner PSA.
Stellantis’ top investor is the Fiat-founding Agnelli family through investment company EXOR. Elkann, the scion of the Agnelli family, is also CEO of Exor (AS:).
Stellantis shares have lost around 40% of their value this year.