Carlos Tavares has abruptly resigned as CEO of Stellantis, the automotive conglomerate responsible for brands such as Vauxhall, Jeep, and Fiat. His departure follows a recent profit warning and plans to close the Luton factory, putting thousands of jobs at risk. Stellantis’ share price has also significantly decreased, indicating challenges ahead for the company.
Stellantis CEO Carlos Tavares Leaves Company Amid Challenges
Stellantis CEO Carlos Tavares Leaves Company Amid Challenges
The sudden resignation of Stellantis' CEO comes in the wake of profit warnings and looming factory closures, raising questions about the company's future.
In a surprising turn of events, Carlos Tavares has stepped down as the CEO of Stellantis, just two months after the company issued a profit warning. Stellantis, which includes well-known automotive brands like Vauxhall, Jeep, Fiat, and Peugeot, is now facing significant challenges as it navigates a changing market.
Tavares’ resignation comes on the heels of a decision to close its Vauxhall van manufacturing facility in Luton, potentially jeopardizing around 1,100 jobs. In a statement, Henri de Castries, the senior independent director of Stellantis, mentioned that "in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision," signaling possible internal strife.
Previously, Tavares was recognized as a dominant figure in the auto industry, known for his aggressive cost-cutting measures both at PSA Group and later at Stellantis, formed from the merger with Fiat Chrysler in 2021. His tenure was marked by controversial remarks regarding the future of Vauxhall operations in the UK, particularly in relation to Brexit and government mandates for increased electric vehicle production.
The abrupt change in leadership raises uncertainties regarding the planned closure of the Luton facility and Stellantis’ overall operational strategy, especially as the company’s sales and profits have witnessed a dramatic decline. The automaker's share price has plummeted by 40% since the beginning of the year, reflecting investor concerns.
Prior to his resignation, Stellantis had already begun searching for a successor, although Tavares was initially expected to lead the company until at least 2026. The organization has now stated it aims to announce a new CEO by mid-2024 while establishing an interim executive committee led by John Elkann, the company’s chairperson, to guide Stellantis through this transition period.
