In a surprising turn of events, Stellantis, the automotive giant encompassing brands like Vauxhall, Jeep, Fiat, and Peugeot, has announced the immediate resignation of its CEO, Carlos Tavares. This unexpected departure follows closely on the heels of a profit warning issued just two months prior, which has raised significant concerns about the company’s direction and stability.
Stellantis CEO Carlos Tavares Steps Down Amid Company Turmoil
Stellantis CEO Carlos Tavares Steps Down Amid Company Turmoil
Stellantis faces leadership changes as CEO Carlos Tavares resigns following profit warnings and factory closure plans.
Tavares' resignation was confirmed by Henri de Castries, Stellantis’ senior independent director, who indicated that diverging viewpoints had surfaced between the board and the CEO, prompting this crucial decision. The timing of Tavares' exit is particularly notable, as Stellantis is currently grappling with considerable challenges, including plans to shutter its Vauxhall van manufacturing facility in Luton—an action that is expected to jeopardize approximately 1,100 jobs.
Once recognized as a formidable figure within the global auto industry, Tavares was known for his stringent cost-cutting measures. His career trajectory included a successful tenure at the French automotive group PSA and continued influence post-merger during Stellantis' formation in 2021. However, recent criticisms regarding his comments on the uncertain future of Vauxhall operations—especially in the context of Brexit and emerging regulations regarding electric vehicles—added to the growing pressure surrounding his leadership.
In light of Tavares’ exit, Stellantis has experienced a dramatic decline in both sales and stock market performance, with its share prices plummeting by 40% since the beginning of this year. While the company has initiated the search for a successor, it was previously anticipated that Tavares would continue in his role until at least 2026. Stellantis has now indicated that a new chief executive is expected to be appointed by mid-next year. During this transitional phase, an interim executive committee will be established under the leadership of the chairman, John Elkann, to guide the company through these turbulent times.
Once recognized as a formidable figure within the global auto industry, Tavares was known for his stringent cost-cutting measures. His career trajectory included a successful tenure at the French automotive group PSA and continued influence post-merger during Stellantis' formation in 2021. However, recent criticisms regarding his comments on the uncertain future of Vauxhall operations—especially in the context of Brexit and emerging regulations regarding electric vehicles—added to the growing pressure surrounding his leadership.
In light of Tavares’ exit, Stellantis has experienced a dramatic decline in both sales and stock market performance, with its share prices plummeting by 40% since the beginning of this year. While the company has initiated the search for a successor, it was previously anticipated that Tavares would continue in his role until at least 2026. Stellantis has now indicated that a new chief executive is expected to be appointed by mid-next year. During this transitional phase, an interim executive committee will be established under the leadership of the chairman, John Elkann, to guide the company through these turbulent times.
