Stellantis CEO Carlos Tavares Resigns Amid Profit Warning and Job Cuts

Carlos Tavares, the chief executive of global automobile giant Stellantis, has resigned from his post with immediate effect, following a significant decline in the company's sales and profits. His departure comes just two months after Stellantis issued a profit warning and announced plans to close its Vauxhall van manufacturing facility in Luton, putting approximately 1,100 jobs at risk. This exit marks a pivotal moment for Stellantis, which encompasses well-known brands such as Vauxhall, Jeep, Fiat, and Peugeot.

Henri de Castries, the senior independent director at Stellantis, noted in a statement that differing views had emerged recently, prompting the Board and Tavares to agree on this decision. Under Tavares’ leadership, previously seen as one of the most influential figures in the automotive sector, Stellantis had adopted a stringent cost-cutting strategy. Tavares was particularly vocal regarding the uncertainties surrounding the future of Vauxhall's operations in the UK, directly linking it to Brexit and evolving government mandates relating to electric vehicle production.

It remains uncertain how Tavares' abrupt exit will impact the planned closure of the Luton plant. Since the beginning of the year, Stellantis' stock price has plummeted by 40%, reflecting the ongoing struggles within the company. Prior to his resignation, the firm had indicated that it was searching for Tavares' successor, with expectations that he would remain until at least 2026. However, Stellantis now aims to appoint a new CEO by the middle of 2024, in the meantime establishing an interim executive committee overseen by chairperson John Elkann.