The departure of Carlos Tavares from the automotive giant he helped create follows his inability to move on from previously successful strategies when faced with new, shifting challenges.

The Chrysler, Dodge, Jeep and Ram retailers watched pricey and older cars pile up on their lots this year, and felt Carlos Tavares wasn't listening.

Until a new CEO is hired, the company will be led by an interim executive committee chaired by John Elkann. Elkann, the great-great-grandson of Fiat founder Giovanni Agnelli, is Stellantis's chairman and the CEO of the automaker's largest shareholder, the Agnelli family investment vehicle Exor NV.

Stellantis CEO Carlos Tavares resigned amid strategic disagreements and financial mismanagement. Read more to see my recommendation for STLA stock.

A record number of CEOs have left their roles in 2024, according to an analysis by a career transitioning firm. Stellantis and Intel's CEOs contributed to the trend this week as the companies face declining stock prices.

The carmaker said it hopes to conclude a hunt for Tavares’ replacement by the first half of 2025. In the meantime, John Elkann, Stellantis chairman and CEO of its largest shareholder Exor, will lead a new interim executive committee.

The auto industry is battling slowing EV demand, rising Chinese competition, and potential tariffs on Mexican imports.

Shares in the maker of Chryslers and Jeeps slid in Europe after Chief Executive Carlos Tavares stepped down with immediate effect. Find out more:

Carlos Tavares is stepping down as Chief Executive Officer of Stellantis, effective immediately, following a sharp decline in the carmaker’s sales. As the Wall Street Journal notes, in July, the company reported that its net profit for the first half of the year had dropped by 48 percent compared to 2023.

A major shakeup in the auto industry after CEO of Stellantis announced that he is resigning. Stellantis makes Chrysler, Jeep, Fiat, and Peugeot among other auto brands.