Mon Dec 02 12:03:29 UTC 2024: ## Stellantis CEO Carlos Tavares Resigns Amidst Profit Warnings and Plant Closures

**Paris/London** – Carlos Tavares, the powerful CEO of automotive giant Stellantis, has abruptly resigned following a boardroom dispute. The announcement comes just two months after the company, which owns brands like Vauxhall, Jeep, Fiat, Peugeot, and Chrysler, issued a profit warning and last week announced the closure of its Vauxhall van factory in Luton, England, putting approximately 1,100 jobs at risk.

Tavares, known for his aggressive cost-cutting strategies and success in turning around troubled companies, had reportedly clashed with the Stellantis board in recent weeks. His departure follows a significant drop in sales and profits, particularly in North America, where the company has been criticized for producing outdated vehicles and failing to adapt to changing market demands. Stellantis’ share price has plummeted 40% this year, significantly underperforming its rivals.

The company’s statement cited differing views between the board and the CEO as the reason for the resignation. Senior independent director Henri de Castries emphasized that the previous alignment between shareholders, the board, and the CEO had been crucial to Stellantis’ success, but that this alignment had broken down. Industry experts point to the company’s struggles in North America, including high unsold vehicle inventories and declining market share, as contributing factors to Tavares’ downfall.

While Tavares had previously agreed to step down in 2026, his early departure leaves Stellantis searching for a new CEO by mid-2024. In the interim, Chairman John Elkann, a member of the influential Agnelli family, will lead an executive committee and oversee the search. Elkann’s influence will be critical in shaping the future direction of the company.

The impact of Tavares’ resignation on the planned closure of the Luton plant remains uncertain. However, the closure has already sparked outrage among employees and local officials, who blame Brexit-related export tariffs and frustrations with previous UK government policies. The future of Stellantis’ UK operations is now shrouded in uncertainty, with experts warning of further potential challenges. The company’s European operations also face pressure from Chinese competitors and slower-than-expected electric vehicle adoption. A potential partnership with Leapmotor of China is still in its early stages.

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