Carlos Tavares, the influential boss of car making giant Stellantis, which encompasses brands like Chrysler, Vauxhall, Jeep, Fiat, and Peugeot, has stepped down with immediate effect. His abrupt exit comes just two months after Stellantis issued a profit warning. Last week, the firm also announced plans to close its Vauxhall van making factory in Luton, putting around 1,100 jobs at risk.

Impact on Vauxhall Operations

In a statement announcing Mr. Tavares' departure, Henri de Castries, Stellantis' senior independent director, stated that "in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision." Before his resignation, Mr. Tavares was one of the most powerful figures in the global motor industry. He had a reputation as a ruthless cost-cutter, initially at the French group PSA and later at Stellantis following its merger with Fiat Chrysler in 2021. Mr. Tavares frequently made headlines in the UK by expressing doubts about the future of Vauxhall operations in the country, linking it to issues such as Brexit and government plans to mandate car makers to build more electric cars. It remains unclear whether his departure will have an impact on the planned closure of Stellantis' Luton plant.Mr. Tavares' position has been weakened recently due to a significant decline in the company's sales and profits. Stellantis' share price has fallen by 40% since the start of this year. In September, the company announced that it had begun the search for his successor, but he was expected to remain in his role until at least 2026. Stellantis now expects to appoint a new chief executive by the middle of next year. In the meantime, it will set up a new interim executive committee led by the firm's chairperson, John Elkann.The closure of the Vauxhall van making factory in Luton is a major blow to the local economy and the employees working there. It highlights the challenges faced by the automotive industry in adapting to changing market trends and regulatory requirements. Stellantis will need to carefully manage this transition to minimize the impact on its workforce and stakeholders.Looking ahead, the appointment of a new chief executive will be crucial for Stellantis' future success. The new leader will need to address the company's current challenges and chart a new course for growth in the highly competitive automotive market. With the departure of Carlos Tavares, Stellantis enters a new phase in its history, and it will be interesting to see how the company navigates these uncertain times.