Carlos Tavares has resigned as the chief executive of Stellantis, the maker of Jeep, Fiat and Peugeot cars announced on Sunday, and said it aimed to find a new leader in the first half of next year.

Previously regarded as one of the most respected executives in the auto industry, Tavares came under strong criticism earlier this year after Stellantis issued a profit warning on its 2024 results, including a forecast for a cash burn of up to €10bn, mostly blaming slow sales and bloating inventories in its key North American market.

“The company’s board of directors, under the chairmanship of John Elkann, accepted Carlos Tavares’ resignation today from his role as chief executive officer with immediate effect,” Stellantis said in a statement.

Stellantis said the process to appoint the new permanent chief executive was well under way, managed by a special committee of the board. The appointment would be made in the first half of 2025, it said, adding that an interim executive committee, chaired by Elkann, would be established.

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 the company’s senior independent director, Henri de Castries.

Tavares has led Stellantis, the world’s fourth largest carmaker by sales, since its creation in early 2021, through the merger of Fiat Chrysler and Peugeot owner PSA.

Stellantis’s top investor is the Fiat-founding Agnelli family through the investment company Exor. Elkann, the scion of the Agnelli family, is also the chief executive of Exor.

Stellantis shares have lost about 40% of their value this year.

Last week, Stellantis announced it plans to close its Vauxhall van factory in Luton, putting 1,100 jobs at risk of being cut or moving location.