Carlos Tavares, the Chief Executive Officer of Stellantis, has resigned from his position effective immediately, following a sharp decline in the carmaker's sales and a profit warning issued in September. The news comes over a year earlier than Tavares' planned retirement in early 2026.

The resignation is attributed to "different views" that have emerged between Tavares and the Stellantis board of directors in recent weeks, according to a statement by Henri de Castries, Stellantis senior independent director. A special board committee headed by Stellantis chairman John Elkann will lead the company until a new CEO is appointed, which is expected to happen within the first half of 2025.

Stellantis, the parent company behind brands such as Dodge, Jeep, Fiat, and Chrysler, has been struggling with declining sales, citing widespread supply chain issues and increased competition from Chinese vehicle manufacturers. In July, the company reported a 48% drop in net profit for the first half of the year compared to 2023.

Tavares has led Stellantis since its formation in 2021, following the merger of Fiat Chrysler and Peugeot SA. During his tenure, the company has made significant investments in electric vehicles, including the development of the STLA Frame, which gives vehicles 690 miles of range with an extender. A fully electric Chrysler Pacifica is also in the works.

The resignation of Tavares raises questions about the company's strategy moving forward, particularly in the electric vehicle space. Stellantis has positioned itself as a major player in the global automotive industry, but the company's struggles in recent months have raised concerns about its ability to compete with other major manufacturers.

Industry analysts will be watching closely as Stellantis navigates this transition period, particularly as the company searches for a new CEO. The appointment of a new leader will likely have significant implications for the company's future direction and strategy.

In a statement, Elkann thanked Tavares for his years of dedicated service and his role in creating Stellantis, adding that he looks forward to working with the new Interim Executive Committee to complete the process of appointing a new CEO.

The news of Tavares' resignation is a significant development in the automotive industry, and its implications will be felt in the months and years to come. As Stellantis moves forward, it will be important to watch how the company addresses its current challenges and positions itself for future success.