Netherlands: Stellantis CEO, Carlos Tavares, has stepped down immediately, marking an incredible shake-up at the helm of one of the world’s largest carmakers. Stellantis, the parent company of Chrysler, Vauxhall, Jeep, Fiat, and Peugeot, has been steering a turbulent period marked by falling sales, a sharp drop in profits, and a 40 percent plunge in its share price this year.
The resignation arrives just two months after the automaker allocated a profit warning and days after it revealed plans to shut down its Vauxhall van factory in Luton, threatening 1,100 jobs. In a statement, Henri de Castries, Stellantis’ senior independent director, stated that, “In recent weeks, different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”
Tavares, renowned as a cost-cutting strategist, rose to dominance during his tenure at PSA Group before overseeing the 2021 merger with Fiat Chrysler to form Stellantis. However, his time in charge has not been without controversy. He has been a vocal critic of Brexit’s impact on Vauxhall’s UK operations and government policies pushing for accelerated electric vehicle production.
While his leadership was credited with driving operational efficiencies, recent setbacks undermined his position, leading Stellantis to begin a succession search in September. Tavares had been predicted to remain in the role until at least 2026. As the company looks to appoint a new CEO by mid-2024, an interim executive committee, led by Chairperson John Elkann, will take charge.
It remains unclear if Tavares’ departure will alter the planned Luton factory closure, which has already drawn significant public and political attention. The decision will likely shape the automaker’s future, a rapidly evolving automotive landscape. This leadership shake-up signals a critical juncture for Stellantis as it grapples with internal discord and external market challenges.
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