Stellantis CEO Carlos Tavares resigns as profit slumps

NEW YORK

Stellantis chief executive Carlos Tavares has resigned "with immediate effect," the auto giant announced, signalling differences over how to confront the group's profit slump.

The Italian-U.S.-French company, whose brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep, said in a statement that the board had accepted the resignation of the 66-year-old Portuguese executive.

"In recent weeks different views have emerged which have resulted in the board and the CEO coming to today's decision," independent director Henri de Castries said in the statement, without giving details.

The group said in September that it had started looking for a successor for Tavares, who had been due to stand down when his current five-year contract ends in early 2026.

"The process to appoint the new permanent chief executive officer is well under way, managed by a special committee of the board, and will be concluded within the first half of 2025," said the statement.

Stellantis has reported growing difficulties in recent months that Tavares had acknowledged as stormy.

A Stellantis earnings report in July said sales in North America, the main profit source, were down 18 percent in the first six months.

In September it cut its profit forecast and later said third-quarter sales in North America were down 20 percent on the 2023 figure.

Like other auto groups, Stellantis has blamed competition from China and the difficult transition to electric cars for much of its troubles.