Shares of Stellantis—the automaker that owns key brands including Jeep, Ram and Chrysler—tanked sharply on Monday morning, hours after the company announced it had accepted CEO Carlos Tavares’ abrupt resignation.
Stellantis CEO Carlos Tavares announced his resignation on Sunday.
The Italian-American automaker’s Paris-listed shares were down more than 7.5% to around $12.1 (€11.5) after markets opened in Europe, while its New York Stock Exchange-listed shares were down 8% in pre-market trading.
Late Sunday, the company announced that CEO Carlos Tavares is stepping down “with immediate effect,” and the company’s board had accepted his resignation.
After the CEO’s exit, the group said it would establish a new interim executive committee led by its Chairman John Elkann.
The company also said it plans to hire a new permanent CEO sometime in the first half of 2025.
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In the announcement, senior Stellantis director Henri de Castries indicated that Tavares’ sudden departure might be the result of differences between him and the board. “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO. However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision,” de Castries said.
45.8%. That is the percentage by which Stellantis’ shares have slumped since the start of 2024.