European carmaker Stellantis announced on Sunday evening its board of directors accepted the resignation of chief executive officer Carlos Tavares with immediate effect, Kallanish reports.

“Stellantis’ 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,” explains Stellantis’ senior independent director, Henri de Castries.

A new permanent ceo will be appointed in the first half of 2025, as a search process is “well underway,” the carmaker says in a statement. Until then, the company will be led by an interim executive committee chaired by John Elkann, current chairman.

“Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders,” the chairman says. He has also thanked Tavares for his “years of dedicated service” and the role he played in the creation of the company, a merger of Fiat Chrysler Automobiles and Peugeot S.A.

The news follows the announcement of a Stellantis plant closure in the UK and a month-long production stoppage at a plant in Italy. The group is also facing major headwinds in the US, including a lawsuit due to collapsing profits.