The abrupt resignation of Carlos Tavares, CEO of Stellantis, took the automotive industry by storm, coming just two months after the company issued a profit warning and announced plans to close its Vauxhall van manufacturing facility in Luton, threatening around 1,100 jobs. This decision was confirmed by Henri de Castries, Stellantis’ senior independent director, who noted that divergent views had emerged leading to Tavares' departure. Previously a powerful figure in the industry, Tavares was known for his aggressive cost-cutting strategies, particularly during his tenure at PSA Group and later, Stellantis, formed from the merger with Fiat Chrysler in 2021. Tavares often expressed concerns about the viability of Vauxhall's UK operations in the context of Brexit and the government's push for electric vehicle production.
Stellantis CEO Carlos Tavares Steps Down Amid Profit Warnings and Job Cuts
Stellantis CEO Carlos Tavares Steps Down Amid Profit Warnings and Job Cuts
In a surprising turn of events, the CEO of Stellantis, a global automotive giant, resigns as the company faces significant financial challenges and impending job losses.
The reasons behind Tavares' sudden exit are further complicated by a significant dip in Stellantis' market performance, which saw its shares plummet by 40% in 2023 alone. Just a month ago, Stellantis had initiated the search for a successor, yet Tavares was expected to remain until at least 2026. The company plans to have a new CEO appointed by mid-2024 and, for now, will form an interim executive committee chaired by John Elkann. How Tavares' exit will impact the closure of the Luton facility remains uncertain, as both the company's overhead costs and profitability come under scrutiny amidst a challenging economic climate.
