Carlos Tavares, the CEO of automotive giant Stellantis, has resigned with immediate effect. This decision comes after a reported disagreement with the group's chairman, John Elkann.
The announcement follows the closure of Stellantis' Vauxhall van factory in Luton, which put 1,000 jobs at risk. The closure was attributed to Stellantis' struggles to meet the UK's zero-emission vehicle mandate. This decision drew public criticism and further strained the relationship between Tavares and Elkann, whose family are the largest shareholders of Stellantis.
Stellantis has faced a turbulent period recently, with 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. Analysts predict 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 prioritizing 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.