NEW YORK (AP) — Stellantis CEO Carlos Tavares is stepping down after nearly four years in the top spot at the automaker, which owns car brands like Jeep and Ram, amid an ongoing struggle with declining sales.
The world’s fourth-largest automaker announced on Sunday that its board had accepted Tavares’ resignation. He will step down from his role as CEO with immediate effect.
Stellantis noted on Sunday that the process to appoint a new, permanent CEO “is well underway.” In the meantime, the company says a new interim executive committee will be established, led by Chairman John Elkann.
As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January 2021 when it merged with Fiat Chrysler Automobiles. Its North American operations have been the company’s main source of profit, but Stellantis has struggled this year amid wider market changes.
Stellantis posted a 27% decline in third-quarter net revenue earlier this year, as gaps in new product launches and inventory reduction measures also reduced global new vehicle shipments by 20%.
The automaker reported net sales of 33 billion euros (nearly $36 billion) in the three-month period ended September 30, compared with 45 billion euros in the same period a year earlier. All regions except South America reported double-digit sales declines, led by North America, which fell 42% to 12.4 billion euros. European turnover fell by 12% to 12.5 billion euros.
In recent months, Tavares has come under fire from US dealers and the United Auto Workers union after dismal financial performance reports.
Outside the US, lawmakers in Italy questioned the former CEO about the company’s production plans as early as October – when the far-right government accused the company of moving assembly plants to low-wage countries.
In efforts to revive sales, Stellantis previously made a number of leadership changes in October. At the time, the company expected Tavares to step down in early 2026, closer to the end of his five-year contract.
In addition to Jeep and Ram, Stellantis’ portfolio also includes brands such as Chrysler, Dodge and Citroën.
