Stellantis Stock Drops After Jeep Maker CEO Resigns

What you need to know

• Stellantis shares tumbled following the carmaker's announcement that CEO Carlos Tavares resigned, effective immediately.
• The company is expecting to name its replacement in the next year.
• Stellantis has also reaffirmed its outlook for 2024 after announcing that U.S. revenue was reducing margins.

Stellantis’ (STLA) stock dropped after Carlos Tavares, the CEO of the struggling automaker announced that he would step down immediately.

Chrysler Jeep Fiat Peugeot, which owns a number of brands, said that the selection process for his successor was streamlined. “well underway.” The company said that the interim executive committee will take over Tavares’s duties until a permanent replacement is named in 2025. 

Henri de Castries Senior Independent Director stated in a release that “in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

Shares of Stellantis were recently off some 7% in morning trading to their lowest point of a year in which they've fallen nearly 50%.

It has faced a tough market, particularly from China. Dealers claim that high prices and a desire to cut costs have discouraged buyers from visiting showrooms. 

Stellantis reiterated its 2024 guidance, given at the close of September. This included an operating margin adjusted between 5.5% to 7%. “double-digit levels.” This slide was largely attributed to the decline in demand from America. In the third quarter of 2010, all brands except Fiat saw a drop of 20% in U.S. sales. 

Stellantis then announced major changes in the executive suite of its company, which included the departures of both its CEO and CFO of the Enlarged European Division.

Correction: In an earlier version, the name Carlos Tavares was misspelled.

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