Stellantis, the world's fourth-largest automaker, announced the resignation of CEO Carlos Tavares. The company's stock dropped 8% following the announcement, marking a nearly 43% decline this year. Tavares' departure, although sudden, was anticipated as Stellantis had been seeking his successor since September. An interim executive committee will manage the company until a new CEO is appointed by mid-2025.
Under Tavares' leadership, Stellantis was formed through the merger of Peugeot-Citroën and Fiat-Chrysler. However, recent disagreements between Tavares, the board, and shareholders emerged due to declining sales in the U.S. and Europe, resulting in a 27% drop in Q3 net revenue to €33 billion. Tensions rose over differing strategies to restore the company's performance.
Stellantis confirmed its 2024 financial guidance, targeting an adjusted operating profit margin of 5.5% to 7%, and aims to resolve North America's high inventory issues by year-end.
