In brief
Stellantis, the global auto giant behind brands like Vauxhall and Jeep, has seen a significant drop in sales and now faces uncertainty about its future direction.
In a surprising move, Carlos Tavares has resigned from his position as CEO of Stellantis, effective immediately. This exit comes just two months after the company issued a profit warning, indicating troubling times ahead. Last week, Stellantis also revealed plans to close its Vauxhall van manufacturing plant in Luton, which threatens around 1,100 jobs.Henri de Castries, Stellantis’ senior independent director, stated that "different views have emerged," prompting the board and Tavares to make this decision. Known for his fierce cost-cutting strategies, Tavares was a dominating force in the motor industry, having previously led the French group PSA before its merger with Fiat Chrysler in 2021. His tenure was often marked by concerns over Vauxhall's future, heavily influenced by Brexit discussions and the push for electric vehicles. Interestingly, it's still uncertain how his resignation will impact the planned closure of the Luton plant.Compounding these issues, Stellantis' sales and profits had been on a dramatic decline, with the company's share price plummeting by 40% this year. While Stellantis had started searching for Tavares' successor in September, he was initially expected to lead the company until at least 2026. Now, the automaker anticipates appointing a new CEO by mid-next year. In the interim, John Elkann, the company’s chairperson, will oversee a newly formed executive committee during this pivotal transition period.
