Carlos Tavares, the CEO of Stellantis, has resigned, marking a significant shift in the automotive industry.

His departure highlights the challenges facing the sector, as traditional strategies of cost-cutting and productivity increases prove insufficient in the rapidly changing landscape.

Tavares' resignation comes amid broader industry struggles, including strikes at Volkswagen and a shift towards sustainable mobility.

The Stellantis board, led by John Elkann, is already searching for a new CEO, with plans to conclude the process by mid-2025. Meanwhile, Edouard Peugeot and Luca de Meo are potential candidates for leadership roles within the industry, as companies navigate the transition to electric and sustainable technologies.