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 and Ram, amid an ongoing struggle with slumping sales.
The world’s fourth-largest carmaker announced that its board accepted Tavares' resignation on Sunday. He will leave his role as chief executive 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. Its North American operations had been the company’s main source of profits, but Stellantis has struggled this year amid larger market changes.
Stellantis posted 27% plunge in net revenues for its third quarter earlier this year 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 a year earlier. 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 dismal financial performance reports.
Beyond the U.S., lawmakers in Italy questioned the former chief executive over the company's production plans back in October — as the country's far-right government accused the company of relocating assembly plants to low-cost 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.
Beyond Jeep and Ram, Stellantis' portfolio also includes brands such as Chrysler, Dodge, and Citroën.
Wyatte Grantham-philips, The Associated Press