THE search for a new Stellantis CEO is on after Carlos Tavares resigned with immediate effect over the weekend, having previously announced his intention to retire in 2026.

After the Stellantis board, chaired John Elkann, accepted Mr Tavares’ resignation on Sunday, a special committee was formed to identify and recruit a new chief executive, which the company says, “will be concluded within the first half of 2025”.

“Until then, a new Interim Executive Committee, chaired by John Elkann, will be established,” said Stellantis in a statement announcing the exit of Mr Tavares.

Carlos Tavares

The statement included a comment from Stellantis senior independent director Henri de Castries that the conglomerate’s success “since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO”.

“However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

So far this year, the Stellantis stock price has slumped 40.81 per cent and its first-half net profit plunged by almost 50 per cent compared with 2023 levels.

Although credited with turning around the fortunes of former General Motors Europe car-maker Opel-Vauxhall, as well as Peugeot and Citroen parent company PSA before the merger with Fiat Chrysler Automobiles that formed Stellantis in 2021 – which delivered strong profitability until now – Mr Tavares has more recently drawn criticism for his handling of the North American market.

In September this year, president of the Stellantis US dealer council Kevin Farrish sent an open letter to Mr Tavares in which he accused him of pursuing of short-term profits that caused “rapid degradation” of the Jeep, Dodge, Ram and Chrysler brands.

“You created this problem,” the letter said.

At the time, David Auto Group president David Kelleher said average monthly new-vehicle at his Philadelphia-based Chrysler-Dodge-Jeep-Ram dealership had plummeted from 165 new cars per month when Stellantis was formed, to 89 in 2024.

“We need a CEO who understands the North American market,” said Mr Kelleher.

Mr Elkann thanked Mr Tavares for “years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry”.

“I look forward to working with our new Interim executive committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO.

“Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”