In a shocking turn of events, Carlos Tavares, the CEO of Stellantis, has resigned with immediate effect. Stellantis, which encompasses well-known brands such as Jeep, Vauxhall, Fiat, and Peugeot, is facing significant challenges, as highlighted by a profit warning issued just two months prior. Recently, the company also revealed plans to shut down its Vauxhall van manufacturing plant located in Luton, which will threaten around 1,100 jobs.
Stellantis CEO Carlos Tavares Resigns Amid Profit Concerns
Stellantis CEO Carlos Tavares Resigns Amid Profit Concerns
Carlos Tavares' unexpected departure raises questions after Stellantis issues profit warnings and plans factory closures.
Henri de Castries, Sono Stellantis’ senior independent director, indicated that differing views had surfaced, which led to the decision between the Board and Tavares. Once regarded as a formidable leader in the automotive sector, Tavares garnered a reputation for aggressive cost-cutting measures during his tenure with PSA Group and later at Stellantis after its merger with Fiat Chrysler in 2021.
Throughout his leadership, Tavares was vocal about the precarious future of Vauxhall operations in the UK, often blaming external factors like Brexit and evolving governmental policies pushing for increased electric vehicle production. While there is uncertainty regarding how his exit will impact the plans for the Luton facility, his leadership faced scrutiny due to a considerable drop in the company’s sales and profits.
Stellantis' performance on the stock market has also been underwhelming, with its share prices plummeting by 40% since the beginning of the year. In September, the company publicly commenced a search for Tavares' successor, with expectations that he would serve until at least 2026. Stellantis has announced plans to appoint a new CEO by mid-next year and has temporarily formed an executive committee led by chairman John Elkann to navigate the transition.
Throughout his leadership, Tavares was vocal about the precarious future of Vauxhall operations in the UK, often blaming external factors like Brexit and evolving governmental policies pushing for increased electric vehicle production. While there is uncertainty regarding how his exit will impact the plans for the Luton facility, his leadership faced scrutiny due to a considerable drop in the company’s sales and profits.
Stellantis' performance on the stock market has also been underwhelming, with its share prices plummeting by 40% since the beginning of the year. In September, the company publicly commenced a search for Tavares' successor, with expectations that he would serve until at least 2026. Stellantis has announced plans to appoint a new CEO by mid-next year and has temporarily formed an executive committee led by chairman John Elkann to navigate the transition.
