Portugal Colonial - Auto giant Stellantis announces 'immediate' resignation of CEO Tavares

The Italian-US-French company, whose brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep, said in a statement that the board had accepted the resignation of the 66-year-old Portuguese executive.

"In recent weeks different views have emerged which have resulted in the board and the CEO coming to today's decision," independent director Henri de Castries said in the statement, without giving details.

The group said in September that it had started looking for a successor for Tavares, who had been due to stand down when his current five-year contract ends in early 2026.

"The process to appoint the new permanent chief executive officer is well under way, managed by a special committee of the board, and will be concluded within the first half of 2025," said the statement.

It added that an "interim executive committee" led by chairman John Elkann will run the firm until then.

Stellantis has reported growing difficulties in recent months that Tavares had acknowledged as stormy.

A Stellantis earnings report in July said sales in North America, the main profit source, were down 18 percent in the first six months.

In September it cut its profit forecast and later said third-quarter sales in North America were down 20 percent on the 2023 figure.

Like other auto groups, Stellantis has blamed competition from China and the difficult transition to electric cars for much of its troubles.

Tavares started his career in the car industry with Renault before becoming chief executive of the old Peugeot-Citroen (PSA) group in 2014. He was made chief executive of Stellantis when PSA and Fiat-Chrysler merged in 2021 to form the new group.

R.J.Fidalgo--PC