Less than a week after Vauxhall announced plans to close its Luton factory, the Chief Executive Officer of Stellantis - the multinational company that incorporates 14 automotive brands - has quit his post. In an official statement released on Sunday, the firm’s board of directors confirmed that Carlos Tavares’ resignation had been accepted with immediate effect. Until a new CEO can be found, a new Interim Executive Committee, chaired by John Elkann, will be established to run the global manufacturer created by the merger Fiat Chrysler Automobiles and the PSA Group in 2021.
The ongoing trials and tribulations of Vauxhall are the tip of a problematic iceberg: Stellantis has lost around 40 per cent of its value this year, and issued a profit warning on its 2024 results two months ago. In its wake, a reshuffle of the firm’s senior management was conducted, but Tavares had initially been expected to remain in his role until his scheduled retirement in early 2026. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision,” commented Stellantis’ Senior Independent Director, Henri de Castries.
Sales in the US - typically the firm’s chief profit generator - slumped by 17 per cent in the third quarter of this year, and Tavares had recently faced dealers disgruntled by oversupply and a unionised workforce threatening a nationwide walkout. In Europe, he was seen increasingly as a divisive figure, especially when calling for significant reductions in production. The Unite union called Stellantis’ decision to close Vauxhall’s van-making factory a "complete slap in the face" for its members working in Luton.
Chairman John Elkann said: “Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry. I look forward to working with our new Interim Executive Committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO. Together we will ensure the continued deployment of the Company’s strategy in the long-term interests of Stellantis and all of its stakeholders.”
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