What's happened
Carlos Tavares has resigned as CEO of Stellantis, effective immediately, following a clash with the board amid declining sales and a profit warning. The company plans to appoint a new CEO by mid-2025 while establishing an interim executive committee led by chairman John Elkann.
Why it matters
What the papers say
According to BBC News, Tavares' exit follows a profit warning and a significant decline in sales, with the company facing a cash burn of up to €10 billion. The Independent highlights that Tavares' departure was influenced by differing views between him and the board, as noted by senior independent director Henri de Castries. The Japan Times confirms that a new CEO will be appointed by mid-2025, emphasizing the urgency of the situation. Business Insider UK mentions that Tavares was initially expected to remain until 2026, indicating a sudden shift in the company's leadership dynamics. The Guardian points out that Tavares was once a respected figure in the industry but faced criticism for the company's performance this year.
How we got here
Tavares, who led Stellantis since its formation in 2021 from the merger of Fiat Chrysler and PSA Group, faced criticism due to a significant drop in sales and profits this year, prompting a profit warning and plans to close the Luton van factory.
Common question
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Why Did Carlos Tavares Resign as CEO of Stellantis?
Carlos Tavares' resignation as CEO of Stellantis has sent shockwaves through the auto industry. With declining sales and a profit warning, many are left wondering what led to this sudden leadership change and what it means for the future of the company. Below, we explore key questions surrounding this significant event.
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What are the latest global news stories impacting 2024?
Stay updated with the most significant news events shaping our world today. From tragic incidents to corporate shake-ups and international relations, these stories are crucial for understanding the current global landscape. Here are some key questions that arise from these events.
More on these topics
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Stellantis is the Dutch-based multinational automotive manufacturing corporation resulting of the merger of French automaker Groupe PSA and Italian-American automaker Fiat Chrysler Automobiles, following completion of a 50-50 merger agreement.
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Carlos Tavares is a Portuguese businessman who serves as the chief executive officer and Chairman of the Managing Board of Groupe PSA, France's largest car manufacturer. He was formerly the chief operating officer at Renault
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Fiat Chrysler Automobiles N.V., often abbreviated as FCA, is an Italian-American multinational corporation and is the world's eighth largest auto maker. The group was established in October 2014 by merging Fiat and Chrysler into a new holding company.
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John Philip Jacob Elkann is an Italian American industrialist. In 2008, he was the chosen heir of his grandfather Gianni Agnelli, and chairs and controls the automaker Fiat Chrysler Automobiles.
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Groupe PSA is a French multinational manufacturer of automobiles and motorcycles sold under the Peugeot, Citroën, DS, Opel and Vauxhall brands. Peugeot is the largest PSA brand. PSA is listed on the Euronext Paris stock exchange and is a constituent of t
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Jeep is a brand of American automobile and also a division of FCA US LLC, a wholly owned subsidiary of the Italian-American corporation Fiat Chrysler Automobiles.