Carlos Tavares, CEO of automobile giant Stellantis, has resigned from his position with immediate effect following reports of disagreements with group chairman John Elkann.
The announcement comes just days after Tavares ordered the closure of Stellantis’ Vauxhall van factory in Luton, putting 1,000 jobs at risk.
The decision to close the Luton plant, attributed to Stellantis’ struggle to meet the UK’s zero-emission vehicle mandate, has sparked public criticism and further strained the relationship between Tavares and Elkann, whose family is Stellantis’ largest shareholder. The plant’s closure follows a turbulent period for Stellantis, marked by a 20% decline in quarterly sales volumes, a €12 billion drop in revenue, and a 43% decline in share value over the past year.
Henri De Castries, Stellantis’ senior independent director, commented on the resignation, citing “different views” between Tavares and the board. Elkann will now lead an interim committee while the company searches for a successor, with analysts expecting the hiring process to extend beyond the auto sector.
Tavares’ tenure has seen Stellantis face the challenges of transitioning to electric vehicles while maintaining profitability. The closure of the Luton plant follows the group’s decision to focus on its electric van plant in Ellesmere Port, a facility that has been maintained during the pandemic with significant support from the UK Government.
Despite public grievances over stringent targets for electric vehicles, Tavares has faced criticism for prioritizing a €3 billion share buyback during a period of financial stress. Analysts at Jefferies noted that Stellantis is now left without leadership at a time when critical decisions are being made regarding market share recovery and industrial capacity management across Europe and North America.
Stellantis shares fell 8% following the announcement, closing at €11.46, further underscoring the ongoing challenges facing the group.
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