Michelle ThompsonCarlos Tavares, the CEO of Stellantis, the automotive giant that owns brands like Chrysler, Vauxhall, Jeep, Fiat, and Peugeot, has resigned suddenly. His departure follows a profit warning issued by the company two months ago. Additionally, Stellantis recently announced the closure of its Vauxhall van factory in Luton, which could threaten around 1,100 jobs.
Henri de Castries, Stellantis’ senior independent director, stated that differing views in recent weeks led to the decision for Tavares to step down. Before resigning, Tavares was a highly influential figure in the global auto industry, known for his aggressive cost-cutting strategies first at PSA and later at Stellantis after its merger with Fiat Chrysler in 2021.
Tavares had frequently expressed concerns about the future of Vauxhall operations in the UK, linking it to issues like Brexit and regulations requiring automakers to increase electric vehicle production. It is unclear if his resignation will impact the closure of the Luton plant.
Tavares’ position had been weakened due to a significant drop in sales and profits at Stellantis, with the company’s stock price falling 40% this year. In September, Stellantis had already begun searching for a successor, although Tavares was expected to remain until at least 2026. The company now plans to appoint a new CEO by mid-2025, with an interim executive committee headed by John Elkann in the meantime.
