Stellantis CEO Carlos Tavares has resigned with immediate effect.
The announcement at the world’s fourth biggest car maker comes amid declining profit and sales in its key North America market.
The manufacturer’s board of directors says it has already started the process to appoint a new CEO, which should be wrapped up within the first half of next year.
“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO,” says Stellantis senior independent director Henri de Castries.
“However, in recent weeks different views have emerged, which have resulted in the board and the CEO coming to today’s [Sunday’s] decision.”
Tavares, 66, is credited with the turnaround of Peugeot and Opel. He was set to retire in 2026.
Tavares led the creation of Stellantis in a 2021 merger of Fiat Chrysler Automobiles and France’s Peugeot.
The company produces vehicles under brand names that include Chrysler, Citroën, Jeep, Fiat, Peugeot, Opel and Maserati.
The New York Times reports that the company’s stock price has dropped more than 50% this year, from a high of more than $29 in March to $13.20, its close on Friday.
On Monday, the share price fell another 8%.
Stellantis has announced the construction of an assembly plant in South Africa in partnership with the Industrial Development Corporation, with production set to start in 2026.
Edited by: Creamer Media Reporter
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