NEW YORK (AP) 鈥� Stellantis CEO Carlos Tavares is stepping down after nearly four years in the top spot of the automaker, which owns car brands like Jeep, Citro毛n and Ram, amid an ongoing .
The world鈥檚 fourth-largest carmaker announced that its board accepted Tavares' resignation Sunday, effective immediately.
Stellantis noted Sunday that the process of finding a new, permanent CEO is 鈥渨ell under way.鈥� In the meantime, the company says a new interim executive committee, led by chairman John Elkann, will be established.
As head of PSA Peugeot, of the Netherlands-based company in January 2021 鈥� when it merged with Fiat Chrysler Automobiles, creating an automotive giant that is the parent to several well-known brands today. Beyond Jeep, Citro毛n and Ram, the company portfolio includes Dodge, Chrysler, Fiat, Peugeot, Maserati and Opel.
Stellantis' North American operations had been the company鈥檚 main source of profits for some time, but struggles piled up this year, with the company citing rising competition and larger market changes. As a result of lofty sticker prices and , many high-priced vehicles have been left unsold on dealers' lots.
For its third quarter, Stellantis posted 27% plunge in net revenues, as gaps in and action to reduce inventories also slashed global shipments of new vehicles by 20%.
The carmaker reported net revenues of 33 billion euros (nearly $36 billion ) in the three-month period ending Sept. 30, down from 45 billion euros in the same period last year. All regions except South America reported double-digit dips in revenues 鈥� led by North America, which plunged 42% to 12.4 billion euros ($13.1 billion).
In recent months, Tavares had come under fire from U.S. dealers and after the release of dismal financial performance reports. He also oversaw cost-cutting efforts that included delaying factory openings and union workers 鈥� further straining the company's relations with the UAW, which filed several grievances against Stellantis and threatened to strike in recent months.
The UAW welcomed Tavares' resignation with president Shawn Fain calling the move 鈥渁 major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long.鈥� He noted that thousands of UAW members had been calling for Tavares' firing for weeks for what Fain called the CEO's 鈥渞eckless mismanagement of the company.鈥�
鈥淭avares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots,鈥� Fain said in a statement. He added that the union looks forward to sitting down with Stellantis鈥� new chief executive and 鈥渨ill keep using all means available鈥� to hold the company accountable.
Beyond the U.S., Stellantis has faced pressure in Italy 鈥� where lawmakers the former chief executive over the company's production plans in October, with the far-right government accusing the company of relocating assembly plants to low-cost countries. Tens of thousands of autoworkers in the country also held a , calling for more employment certainty and protections.
In efforts to revive sales, Stellantis previously made a in October, which included naming new heads of operations in North America and Europe. At the time, the company expected Tavares to step down in early 2026, closer to the end of his five-year contract.
The company for a CEO to eventually succeed Tavares, but it maintained those efforts were part of standard leadership transition plans.
In a statement Sunday, Stellantis鈥� senior independent director Henri de Castries said that Stellantis' success is 鈥渞ooted in a perfect alignment鈥� between shareholders, the company's board and the CEO 鈥� but noted 鈥渄ifferent views鈥� had emerged in recent weeks, resulting in the decision to approve Tavares' resignation.
Elkann, the chairperson of Stellantis' board, thanked Tavares for 鈥渉is years of dedicated service and the role he has played in the creation of Stellantis鈥� in an additional statement. He added that he looks forward to appointing a new CEO.
Stellantis did not comment further beyond Sunday's release. The announcement arrived shortly after Bloomberg Tavares' plans to step down, citing unnamed sources familiar with the matter.
Wyatte Grantham-philips, The Associated Press
