CEO Tavares39; abrupt departure knocked Stellantis shares
Board worried about Tavares39; focus on costcutting source
Company struggling with too much inventory, Chinese competition
Problems not easily fixed analyst

MILAN, Dec 2 Reuters Outgoing CEO Carlos Tavares clashed with Stellantis39; board over his plans to quickly turn around the ailing U.S. business by cutting costs, rather than focusing on longterm strategy, investors and bankers familiar with the matter said on Monday.

Shares in the Jeep, Fiat and Peugeot manufacturer slumped as much as 10, hitting their lowest since July 2022, as investors worried about the vacuum left at the top of the world39;s No. 4 carmaker following Tavares39; resignation on Sunday.

Stellantis is struggling to get rid of overcapacity and bloated inventory in its key North American market, at a time when global demand remains sluggish and competition from Chinese rivals, especially in electric vehicles, is intensifying.

In addition to its U.S. travails, the company39;s focus on raising prices among its massmarket marques has driven away inflationhit customers in its other important market, Europe.

Stellantis had said shortly after a shock profit warning in September that Tavares would retire in early 2026, at the end of his current term. The process to select a new CEO was initially set to be completed by the final quarter of next year.

Interviews with half a dozen shareholders, bankers and analysts show how quickly since then…