Stellantis shares slump after CEO's shock departure

(Sharecast News) - Shares in auto giant Stellantis slumped on Monday after the shock resignation of Carlos Tavares as the chief executive over the weekend. Stellantis, which makes the Jeep, Fiat, Vauxhall and Peugeot marques, said it would try to replace Tavares in the first half of 2025.

The company has been plagued by falling sales and growing inventories in Nirth America. It issued a profit warning with its 2024 full-year.

Tavares had been expected to retire at the end of his mandate in early 2026.

"Stellantis's success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO. However, in recent weeks different views have emerged which have resulted in the board and the CEO coming to today's decision," said Stellantis senior independent director Henri de Castries.

Tavares was in charge of Stellantis since its creation in early 2021 through the merger of Fiat Chrysler and Peugeot owner PSA.

Reporting by Frank Prenesti for Sharecast.com