The multinational automotive group Stellantis closed the session of the Milan Stock Exchange with a decline of 6.3%, leaving its stock at 11,746 euros per share, after the news last Sunday of the resignation of the companyS CEO, Carlos Tavares.
At midday the shares of brands such as Peugeot, Citroën, Fiat, Jeep, Dodge and Opel were trading at 11,268 euros, reaching their intraday low with a drop of 10%. This year it has collapsed by 44.46%, while its market capitalization amounts to 35.5 billion euros.
Meanwhile, on the New York Stock Exchange, where the automotive group is also listed, shares in Europe recorded a decline of 6.36% at the close, with the securities valued at 12.37 dollars, although since the opening of New York hit a low of $12.12.
Stellantis announced yesterday in a statement that the company’s board of directors, under the chairmanship of John Elkann, accepted the resignation of Carlos Tavares as CEO with immediate effect.
The group born in 2021 after the merger between Groupe PSA and Fiat Chrysler has specified that the process of appointing the new permanent CEO is underway, managed by a special committee of the board of Directors, and will conclude in the first half of 2021.2025 Until than,Stellantis had announced the creation of a new interim executive committee,chaired by John Elkann.
Pressure had mounted on Tavares due to Stellantis’ poor performance in its core markets such as the United States, one of its biggest sources of profits along with Europe.
Stellantis also said it stands by its financial guidance presented on October 31 for full-year 2024 results, which it had revised downward to an adjusted operating profit (AOI) margin of between 5.5% and 7%. lower than the previous one. “double-digit” percentage.
What are the potential consequences for Stellantis following Carlos Tavares’ resignation as CEO?
Interview with Automotive Expert: Implications of Carlos Tavares’ Resignation at Stellantis
Editor of Time.news: Thank you for joining us today. Recent news of Carlos Tavares’ resignation as CEO of Stellantis has sent shockwaves through the automotive market,resulting in a significant decline in stock prices. Can you provide some insights into how this resignation might impact Stellantis and its shareholder confidence?
Automotive Expert: Absolutely, and thank you for having me. Carlos Tavares was a pivotal figure at Stellantis, especially given his leadership following the merger between Groupe PSA and fiat Chrysler in 2021. His abrupt resignation, which coincided with a 6.3% drop in share prices on the Milan Stock Exchange, can understandably shake investor confidence. Stocks for brands under the Stellantis umbrella—like Peugeot, Citroën, and Jeep—reached an intraday low of 10%, reflecting investor concerns about the company’s future direction.
Editor of Time.news: It’s clear that the markets are reacting negatively. Stellantis reported a staggering 44.46% collapse in share value this year. What do you think led to this significant decline?
Automotive Expert: The decline can be attributed to several factors, primarily Stellantis’s underperformance in core markets such as the United States. Tavares was under increasing pressure to drive profitability in these key regions, which serve as major revenue sources. Additionally, the adjustment of the financial guidance for full-year 2024 results — specifically lowering the adjusted operating profit margin to between 5.5% and 7%—shows a sharp departure from previous expectations of double-digit margins. Such revisions are often alarming for investors, hence the sell-off we witnessed.
Editor of Time.news: With john Elkann acting as the interim head and a special committee seeking Tavares’ replacement, what do you expect from this transition period?
Automotive Expert: Transition periods can be unpredictable. The declaration about forming an interim executive committee is designed to provide stability; however,it can also lead to uncertainty. Investors will be looking for a seamless transition and a clear strategy from the board.Until a new permanent CEO is appointed, which is expected in the first half of 2025, it’s essential for Elkann and the team to reassure the market through obvious communication and a firm commitment to revitalizing Stellantis’s performance.
Editor of Time.news: What practical advice can you offer to shareholders and investors in light of these changes at Stellantis?
Automotive Expert: Investors should remain vigilant. It’s critically important for them to closely monitor updates from Stellantis regarding the appointment of a new CEO and the company’s strategy moving forward. Understanding the new leadership’s vision will be crucial. Additionally, diversifying investments to mitigate risks associated with fluctuating automotive shares could be prudent. Keeping an eye on Stellantis’ performance in North America and Europe will also be essential, as these regions considerably impact overall profitability.
Editor of Time.news: what industry insights can we glean from Stellantis’ current situation?
Automotive Expert: Stellantis’s predicament highlights the broader challenges facing the automotive industry, including the need for robust leadership amidst rapid market changes, technological advancements, and evolving consumer preferences. as we have seen, successful navigation through these shifts is critical. Companies must remain adaptable, focusing on innovation and operational efficiency to ensure long-term sustainability. The fallout from Tavares’ resignation could also signal to the industry the importance of leadership stability during periods of significant operational challenges.
Editor of Time.news: Thank you for your valuable insights. It’s clear that the automotive landscape is more complex than ever, and understanding these dynamics will be crucial for stakeholders moving forward.
Automotive Expert: My pleasure. It’s a rapidly changing environment, and staying informed will be key for investors and the industry alike.
