Starry NV Chief Executive Officer Carlos Tavares is stepping down after falling profits and weak US sales at the Jeep SUV and Fiat car maker, to be run by an interim board headed by Chairman John Elkann.
A new CEO will be named in the first half of 2025, the company said in a statement, confirming a Bloomberg News report about Tavares’ resignation earlier Sunday.
Tavares is leaving his position earlier than expected because his views on the automaker’s future differed from those of management and some shareholders, the statement said. The company confirmed its financial guidance for the year.
Bloomberg News reported in October that Elkann had begun the process of searching for Tavares’ successor. The CEO later said he would stay until the end of his term in early 2026.
Tavares is one of a number of industry executives under pressure as automakers face a slumping market that struggles with an economic slowdown in China, reduced demand for electric vehicles in Europe and the threat of tariffs as Donald Trump prepares to return to the White House. house. Nissan The Chief Financial Officer of Motor Co. Stephen Ma is too set to step downpeople familiar with the matter said over the weekend.
Tavares, known for his ability to cut costs, has been trying to regain control in recent weeks after setbacks led the automaker to lower its full-year profit and cash flow expectations in late September. While European rivals such as Volkswagen AGs are also struggling with weak demand, the size of Stellantis’s warning has raised concerns among shareholders.
Share a slide
Stellantis shares have fallen 38% over the past 12 months.
Tavares has recently been slammed by investors, dealers and unions over falling sales, an aging U.S. vehicle lineup and excessive inventories, resulting in a profit warning in September. While Tavares promised fixes and replaced his finance chief and other executives, market share continued to fall in key markets including France, fueling concerns about the automaker’s long-term outlook.
After rising through the ranks to Renault SA led by cost-cutting champion Carlos Ghosn, Tavares, 66, has long impressed investors with his ability to turn around struggling automakers where others have failed.
He was on track to repeat that success early on as CEO of Stellantis, reducing the number of vehicle rigs and cutting jobs. Tensions have escalated in recent months, with unions warning that the company’s drive to cut costs is leading to quality problems and delays in the launch of key new models. In the US, dealers accuse Tavares of damaging brands such as Jeep, Dodge, Ram and Chrysler.
