Carlos Tavares, CEO of the automotive giant Stellantis, has resigned following a clash with the company’s board. This decision comes after Stellantis issued a profit warning two months ago and revealed plans to close its Vauxhall van-making facility in Luton, jeopardizing 1,100 jobs.
Tavares, known for his hardline approach to cost-cutting, played a significant role in turning around PSA Group and spearheading its merger with Fiat Chrysler. Despite initial successes, Stellantis has faced challenges, including a sharp decline in North American sales, increased inventory, and lost market share.
The company’s stock has dropped 40% since the start of the year, and Tavares’ resignation further triggered a 9% dip. Stellantis has since announced that it will search for a new CEO, with interim leadership provided by John Elkann, Stellantis chair and heir to the Agnelli family, which holds substantial influence over the company’s future direction.
The company is under increasing pressure, facing a competitive landscape with rising Chinese automakers and the slow uptake of electric vehicles in Europe. While Stellantis attempts to recalibrate its strategy, the fate of its UK operations, particularly the closure of the Luton plant, remains uncertain.
