NEW YORK (AP) — Stellantis CEO Carlos Tavares is stepping down after nearly four years in the top spot of the automaker, which owns car brands like Jeep, Citroën and Ram, amid an ongoing struggle with slumping sales.
The world’s fourth-largest carmaker announced that its board accepted Tavares’ resignation Sunday, effective immediately.
Stellantis noted Sunday that the process to appoint a new, permanent CEO is “well under way.” In the meantime, the company says a new interim executive committee, led by chairman John Elkann, will be established.
As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January 2021 — when it merged with Fiat Chrysler Automobiles, creating an automotive giant that is the parent to several well-known brands today. Beyond Jeep, Citroën and Ram, Stellantis’ portfolio includes Dodge, Chrysler, Fiat, Peugeot, Maserati and Opel.
Stellantis’ North American operations had been the company’s main source of profits for some time, but struggles piled up this year — with the company citing larger market changes and rising competition.
For its third quarter, Stellantis posted 27% plunge in net revenues, as gaps in launching new products and action to reduce inventories also slashed global shipments of new vehicles by 20%.
The carmaker reported net revenues of 33 billion euros (nearly $36 billion ) in the three-month period ending Sept. 30, down from 45 billion euros in the same period last year. All regions except South America reported double-digit dips in revenues — led by North America, which plunged 42% to 12.4 billion euros. Europe revenues dropped 12% to 12.5 billion euros.
In recent months, Tavares had been under fire from U.S. dealers and the United Auto Workers union after the release of dismal financial performance reports. He also oversaw cost-cutting efforts that included delaying factory openings and laying off union workers — adding to further strain with the UAW, which filed several grievances against Stellantis and threatened to strike in recent months.
Beyond the U.S., Stellantis has faced pressure in Italy — where lawmakers questioned the former chief executive over the company’s production plans in October, with the far-right government accusing the company of relocating assembly plants to low-cost countries. Tens of thousands of autoworkers in the country also held a one-day walkout, calling for more employment certainty and protections.
In efforts to revive sales, Stellantis previously made a number of leadership changes in October, which included new heads of operations in North America and Europe. At the time, the company expected Tavares to step down in early 2026, closer to the end of his five-year contract.