Investing.com– Stellantis NV (NYSE:STLA) said on Sunday that CEO Carlos Tavares will step down effective immediately, and that his replacement will be appointed within the first half of 2024.
Tavares’ resignation comes as the automaking giant grapples with lagging sales, especially of its Jeep and Ram sales in North America. A slew of reports in recent months had suggested that the automaker was seeking new leadership.
Tavares had also faced criticism after Stellantis issued a profit warning for 2024, amid heightened expenses and high inventories in North America.
“In recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision,” Senior Independent (LON:IOG) Director Henri de Castries said in a press release.
Stellantis reiterated its profit warning, and said that a new interim executive committee, headed by Chair John Elkann, will handle Tavares’ responsibilities until his replacement is found.