Stellantis CEO Carlos Tavares abruptly resigns as car sales decline
In a surprising turn of events, Carlos Tavares, the CEO of global automobile giant Stellantis, has resigned. The sudden exit comes just two months after the company—the owner of popular brands like Chrysler, Vauxhall, Jeep, Fiat, and Peugeot—issued a profit warning. The development also comes after Stellantis announced last week that it will shut down its Vauxhall van production facility in Luton.
Board's statement on Tavares's departure
Henri de Castries, Stellantis's Senior Independent Director, released a statement about Tavares's departure. In an official blog post, he disclosed, "In recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision." Tavares was one of the most powerful people in the global automotive industry.
Reputation and impact on Stellantis
Tavares was known for his aggressive cost-cutting strategies, first at the French group PSA and later at Stellantis after its merger with Fiat Chrysler in 2021. Hans Greimel, Asia Editor at Automotive News, told the BBC, "He [Tavares] was known for being able to turn around companies that were troubled." However, critics argued his cost-cutting measures were excessive and negatively impacted product development and quality, Greimel added.
Stance on Vauxhall operations and Brexit
Tavares frequently made headlines in the UK by expressing doubts over the future of Vauxhall operations in the country. He associated these concerns with problems like Brexit and government policies forcing car manufacturers to make more electric vehicles (EVs). It is still unclear how his exit will affect the proposed closure of Stellantis's Luton plant.
Stellantis's performance and future plans post-Tavares
Tavares's position was recently weakened by a major decline in sales and profits at Stellantis. The company's share price has tanked 40% since the start of 2024. In September, Stellantis announced it had started looking for Tavares's successor, but he was expected to stay on until at least 2026. The company now expects to appoint a new CEO by mid-next year and will form an interim executive committee led by chairperson John Elkann in the meantime.
