NEW YORK, Dec. 2 (Xinhua) -- U.S. Chrysler parent Stellantis N.V. has said its Chief Executive Officer Carlos Tavares is stepping down, effective immediately, after the automaker's sales and profit sharply declined this year.
The company's board of directors accepted Tavares' resignation on Sunday from his role as CEO with immediate effect, Stellantis said in a press release.
The process to appoint the new permanent CEO is under way, and will be concluded within the first half of 2025, the company said. Until then, the company will establish an interim executive committee, led by Stellantis Chairman John Elkann, to handle Tavares's duties.
Shares of the company dropped about 7 percent in Monday trading. Stellantis shares have fallen more than 40 percent this year. The company said on Sunday that it wasn't changing the financial guidance that it gave in October.
"Tavares's decision to resign, more than a year earlier than expected, follows a tumultuous year for the automaker, which was created in January 2021 through the merger of Fiat Chrysler Automobiles and France's PSA Group," said The Wall Street Journal in its report on Monday about the move.
Stellantis senior independent director Henri de Castries said in a written statement that "different views" have emerged in recent weeks, resulting in Tavares stepping aside. The automaker had said previously that Tavares would stay on until the end of his contract, in early 2026.
