• Stellantis CEO Carlos Tavares has resigned.
• An Interim Executive Committee led by chairman John Elkman has been established.
• The company’s Board of Directors will appoint a new CEO “within the first half of 2025.”

Carlos Tavares has suddenly resigned from his position as Chief Operating Officer at Stellantis, one of the largest car manufacturers in the world. The decision was announced yesterday evening and the board of directors has already accepted Tavares’ resignation.

Stellantis has created an Interim Executive Committee which will effectively do Tavares’ job until a new CEO is appointed “within the first half of 2025.” Board of Directors chairman John Elkman leads the IEC.

Previously, Tavares, who has acted as CEO since Stellantis’ creation in 2021, said he would stick to his role in the company until his mandate ended in early 2026. The comments came after Stellantis acknowledged it was looking for a successor to him.

Bloomberg wrote that Tavares’ sudden resignation came after a dispute with the board over how to turn the dites on weakening sales and a stock slump. In the third quarter, Stellantis reported a 27% drop in revenue and a 20% decline in shipments globally. In North America, the picture is even bleaker, with shipments down 36%.

Earlier this year, the automaker announced it would sell its massive Arizona proving grounds by the end of the year as a cost-cutting measure. Slow sales have also prompted Stellantis to pause the production of several models around the world, including the venerable Fiat Panda, electric Fiat 500e, Dodge Durango and Jeep Grand Cherokee. The launch of the all-electric Ram 1500 REV and the range-extended Ram 1500 Ramcharger has also been delayed.

Maserati, the conglomerate’s highest-priced brand, is bleeding money, and Alfa Romeo, a staple of the Italian auto industry, is having a rough time appealing to American consumers–the Giulia sedan was the slowest-selling car in the U.S. in September, according to an analysis by CarEdge. Chrysler, meanwhile, is trying to survive with just one model in its lineup, the Pacifica minivan.

Shawn Fain, president of the United Auto Workers union, who criticized Tavares in the past, said the decision is “a major step in the right direction for a company that has been mismanaged and a workforce that has been mistreated for too long.”