Key Takeaways

• Struggling automaker Stellantis on Sunday announced it had accepted the resignation of CEO Carlos Tavares.

• The move is effective immediately, the Jeep and Chrysler parent said.

• Stellantis said a process to name a permanent CEO "is well under way" and "will be concluded within the first half of 2025."

• The company will be led in the meantime by an interim executive committee headed by board chair John Elkann.

Struggling Jeep and Chrysler parent Stellantis (STLA) on Sunday announced it had accepted the resignation of Chief Executive Officer (CEO) Carlos Tavares, effective immediately.

The Netherlands-based Stellantis, whose shares have plummeted 43% this year, said a process to name a permanent CEO "is well under way" and "will be concluded within the first half of 2025."

The company will be led in the meantime by an interim executive committee headed by board chair John Elkann.

"Stellantis' success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO," senior independent director Henri de Castries said. "However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision."

Stellantis Affirms 2024 Outlook

Stellantis also affirmed its 2024 guidance—including adjusted operating income margin between 5.5% and 7.0%, down from its prior projection for "double digit" levels—which caused its stock to tumble when announced in late September.

The Big Three automaker said at the time it had "accelerated its planned normalization of inventory levels in the U.S.," aiming for no more than 330,000 units of dealer inventory by the end of the year instead of the first quarter of 2025.