The CEO of the automaker Stellantis, which produces well-known vehicles such as Jeep and Chrysler, is resigning effective immediately, the company said Sunday.
In a statement, the automaker, which is fourth largest in the world by sales behind Toyota, Volkswagen, and Hyundai, announced that the board of directors accepted the resignation of now-former CEO Carlos Tavares, citing “different views” that have emerged as sales in the United States have plummeted.
“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,” the statement said.
The company added that the process to find a new CEO is already “well under way,” as Tavares’s contract was set to expire in 2026.
Tavares, 66, is a longtime auto executive who previously worked as CEO of the French automaker Peugeot and as executive vice president at Nissan. He became the CEO of Stellantis when it was first formed in a merger of Fiat Chrysler Automobiles and France’s PSA Group in 2021.
After initial success during the COVID-19 pandemic, the company’s sales began to fall in the first half of 2024, with net profit falling by 48%. Shares of Stellantis have fallen by more than 40% this year.
Regarding slowing U.S. sales, Tavares pinned the blame on his own “arrogance” earlier this summer.
“When I am saying we were arrogant, I’m talking about myself, nobody else. I’m talking about the fact that I should have acted immediately, recognizing that the convergence of those three problems was there, and we had to set up a task force to address them,” he said at a Stellantis investor day.
At the same meeting, Tavares also made clear his opposition to tariffs, which is now at the forefront of President-elect Donald Trump’s trade policy.
Earlier this week, Trump announced that his tariff plan would include 25% tariffs on imported goods from Canada and Mexico, leading to shares of Stellantis and fellow automaker General Motors falling by 4% and 7%, respectively.
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The plan could severely affect the automotive industry as many companies have moved manufacturing plants to other countries to lower the cost of production on vehicles.
Stellantis, for its part, has four production plants in Mexico.
