Stellantis CEO Carlos Tavares Resigns Amid Profit Warnings and Job Cuts

Stellantis, which encompasses major brands like Vauxhall, Jeep, and Fiat, faces significant challenges as it navigates declining sales and impending job losses.

 

In a shocking turn of events, Carlos Tavares, the CEO of automotive giant Stellantis, has stepped down effective immediately. This resignation follows a profit warning issued by the company two months prior. Just last week, Stellantis announced plans to close its Vauxhall van manufacturing facility in Luton, jeopardizing around 1,100 jobs.

Henri de Castries, senior independent director at Stellantis, noted in a statement, "in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision." Tavares was previously regarded as one of the most influential figures in the automotive sector, known for his stringent cost-cutting measures as the leader of PSA and later Stellantis after its merger with Fiat Chrysler in 2021.

He frequently drew attention in the UK with his comments on the uncertain future of Vauxhall operations, influenced by factors such as Brexit and emerging governmental regulations pushing for increased electric vehicle production. It remains uncertain if Tavares' resignation will have any implications for the planned closure of the Luton plant.

His departure coincides with a steep decline in the company's performance, evidenced by a 40% drop in Stellantis' share value since the beginning of the year. While Stellantis had initiated the search for a new CEO in September, it was believed Tavares would continue in his role until at least 2026.

The company has announced plans to appoint an interim executive committee, headed by current chairperson John Elkann, while representatives have indicated a new chief executive is expected to be named by mid-next year.