Stellantis, the European automotive titan and owner of Vauxhall, has announced the unexpected resignation of its chief executive, Carlos Tavares, less than a week after announcing the end of operations at its key º£½ÇÊÓƵ plant in Luton. Stellantis' statement confirmed that the board has accepted Tavares' decision and is planning to appoint a successor in the first half of 2025.
Senior independent director Henri de Castrie cited "different views" as the reason for the split between Tavares and other board members, which precipitated his departure. Only last Tuesday, the company placed over 1,000 British jobs in jeopardy by revealing their strategy to shutter the Luton facility and shift production to Ellesmere Port in Cheshire.
The Dutch-headquartered automobile manufacturer attributed this consolidation to waning consumer interest in electric vehicles (EVs) coupled with stringent new regulations. These rules impose penalties on auto businesses operating in the º£½ÇÊÓƵ that fail to meet specified zero-emission sales quotas.
These Zero-Emission Vehicle (ZEV) mandates, introduced by the Conservative government in January, have become a point of intense opposition from car producers. Questions about how the new mandates affect the company's international performance arise amidst Tavares’ surprising exit, especially following a noticeable downturn in Stellantis' financial results.
Recently, The Guardian reported that Natalie Knight, the finance chief of Stellantis, assured investors the company was "confident" it could satisfy the ZEV goals while maintaining profitability in the º£½ÇÊÓƵ market. Against this backdrop, Stellantis' stock value has plummeted by more than 40% this year, as reported by .
The company, which also owns Peugeot and Citreon, stated it would adhere to the full-year guidance provided in October, following a profit warning issued in September. Chairman John Elkann commented: "Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis, in addition to the previous turnarounds of PSA and Opel, setting us on the path to becoming a global leader in our industry.
"I look forward to working with our new interim executive committee, supported by all our Stellantis colleagues, as we complete the process of appointing our new CEO.
"Together we will ensure the continued deployment of the company’s strategy in the long-term interests of Stellantis and all of its stakeholders."
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