Carlos Tavares, chief executive of automotive giant Stellantis, has stepped down with immediate effect following a reported fallout with the group’s chairman, John Elkann.
The announcement comes just days after Tavares ordered the closure of Stellantis’ Vauxhall van factory in Luton, placing 1,000 jobs at risk.
The decision to shut the Luton plant, attributed to Stellantis’ struggles to meet the UK’s zero-emission vehicle mandate, drew public criticism and further strained the relationship between Tavares and Elkann, whose family are the largest shareholders of Stellantis. The plant’s closure follows a turbulent period for Stellantis, marked by a 20% drop in quarterly sales volumes, a €12 billion revenue decline, and a 43% fall in share value over the past year.
Henri de Castries, senior independent director of Stellantis, commented on the resignation, noting “different views” between Tavares and the board. Elkann will now lead an interim committee as the company searches for a successor, with analysts predicting the recruitment process will extend beyond the automotive sector.
Tavares’ tenure saw Stellantis grappling with the challenges of transitioning to electric vehicles while maintaining profitability. The Luton factory’s closure follows the group’s decision to focus on its electric van plant in Ellesmere Port, a facility preserved during the pandemic with substantial UK government subsidies.
Despite public grievances over stringent EV targets, Tavares faced criticism for prioritising a €3 billion share buyback during a period of financial strain. Analysts at Jefferies noted that Stellantis is now left without leadership at a time of critical decisions 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 underlining the group’s ongoing challenges.