The Stellantis CEO exit comes as a surprise to many. Carlos Tavares, the boss of car-making giant Stellantis, has quit with immediate effect following a boardroom clash. Consequently, the company is now facing a significant change in leadership.
Tavares’ abrupt exit from the company, which owns brands including Vauxhall, Jeep, Fiat, Peugeot, and Chrysler, comes two months after Stellantis issued a profit warning. Additionally, the firm announced plans to close its Vauxhall van-making factory in Luton, putting about 1,100 jobs at risk.
Before his resignation, Tavares was one of the most powerful people in the global motor industry. He had a reputation as a ruthless cost-cutter, at both French group PSA and then, following its merger with Fiat Chrysler in 2021, at Stellantis.
Meanwhile, Tavares’ position had been undermined recently by a dramatic fall in sales and profits at the company. In September, Stellantis issued a profit warning after it reported a sharp drop in sales in North America.
Stellantis’ share price has fallen by 40% since the start of this year. The company now expects to appoint a new chief executive by the middle of next year. The Stellantis CEO exit marks a significant change for the company, and it will be interesting to see how the new leadership will address the challenges facing Stellantis.
The future of Stellantis’ UK operations remains uncertain. The company’s decision to close its Luton factory has sparked concerns about job losses and the impact on the local economy. The new leadership will need to address these concerns and develop a strategy for the company’s UK operations.
