Carlos Tavares, CEO of Vauxhall owner Stellantis, has resigned with immediate effect, just days after the announcement that Vauxhall's Luton plant would be closing.
The 66-year-old chief executive had led the automotive giant, which includes brands such as Jeep, Fiat and Peugeot, since its formation in 2021 and had planned to step down in 2026.
The sudden departure comes after Tavares had previously headed up the PSA Group for seven years before the creation of Stellantis.
The company announced his resignation on Sunday, with the board accepting his immediate departure from the top position at the 14-brand manufacturer.
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Carlos Tavares has resigned with immediate effect just days after the announcement of the closure of the Luton plant
REUTERS
The resignation follows emerging tensions between Tavares and the company's board, according to Stellantis Senior Independent Director Henri de Castries.
He said: "Stellantis' success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO.
"However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today's decision."
Tavares had been facing pressure from US dealers and the United Auto Workers union following a disappointing first-half financial performance, with the company struggling with excess high-priced inventory on dealer lots.
Recent layoffs at facilities in Michigan and Ohio had drawn criticism from union leaders, who blamed mismanagement, with the Luton plant closure adding to the pressure.
Chairman John Elkann expressed gratitude for Tavares' service in a statement following the resignation, thanking him for his years of service and helping the brand become a "global leader".
This follows the announcement that Stellantis will be shutting its Vauxhall plant in Luton, potentially putting 1,100 jobs at risk.
The company is proposing to consolidate its UK manufacturing of light commercial vehicles at its Ellesmere Port site in Cheshire, backed by £50million in extra funding.
Stellantis had previously warned that it would be put off from further investment in the UK in response to the controversial Zero Emission Vehicle (ZEV) mandate.
It dictates that manufacturers need 22 per cent of new car sales to come from zero emission vehicles by the end of the year, with further targets of 80 per cent by 2030.
Stellantis has pledged to offer relocation support for Luton employees willing to transfer to the Ellesmere Port site, where hundreds of permanent jobs will be created.
The company will also provide comprehensive job support and retraining opportunities for affected workers in the Luton area.
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Carlos Tavares with former Business Secretary Greg Clarke at Vauxhall's Luton plant in 2018
PA
The site currently produces electric versions of several commercial vehicles, including the Citroën ë-Berlingo, Vauxhall Combo Electric, and Peugeot E-Partner.
A special committee of the Stellantis board is now managing the process of appointing a new permanent Chief Executive Officer, which is expected to be concluded within the first half of 2025.
In the interim period, John Elkann will chair a newly established Executive Committee to lead the company.
Despite the leadership changes, Stellantis has confirmed it will maintain its financial guidance presented to investors on 31 October 2024.
