Stellantis CEO Carlos Tavares Resigns Amid Turbulent Times

In a surprising turn of events, Carlos Tavares has stepped down from his position as CEO of Stellantis, the car manufacturing powerhouse owning automotive icons such as Vauxhall, Jeep, Fiat, and Peugeot. His exit comes just two months after the company issued a profit warning and revealed plans to close its Vauxhall van factory in Luton, potentially jeopardizing about 1,100 jobs. Henri de Castries, Stellantis’ senior independent director, stated that "different views have emerged" between Tavares and the Board, leading to the abrupt decision.

Before his resignation, Tavares was recognized as a formidable leader in the auto industry, known for his aggressive cost-cutting strategies that began during his tenure at the PSA Group and continued after the 2021 merger with Fiat Chrysler. He had a history of expressing concerns regarding the future of Vauxhall in the UK, linking it to Brexit-related challenges and government policies that favored electric vehicle production.

Recently, Tavares faced mounting pressure from declining sales and profits, which took Stellantis' share price down by 40% since the year's start. Though the firm began searching for his successor in September, he was initially expected to remain until 2026. Stellantis now anticipates appointing a new CEO by mid-2024, while John Elkann, the chairperson, will lead an interim executive committee during this transition period. The impact of Tavares' resignation on the planned factory closure remains uncertain as the company navigates these challenging waters.