Stellantis CEO Carlos Tavares has abruptly resigned due to a boardroom clash, citing different views among the board and CEO. The company’s share price has fallen by 40% since the start of this year, and Stellantis is struggling with sales and profits in North America. The closure of the Vauxhall van making factory in Luton will put about 1,100 jobs at risk.
Stellantis Boss Abruptly Quits Following Boardroom Clash
Carlos Tavares, the CEO of Stellantis, has resigned with immediate effect due to a boardroom clash. The company’s share price has fallen by 40% since the start of this year, a far worse performance than its rivals.
Reasons for Resignation
According to Henri de Castries, Stellantis’ senior independent director, different views have emerged in recent weeks, leading to the board and CEO coming to the decision. Tavares had already agreed to step down in 2026, rather than extending his contract.
Background on Tavares
Tavares made his name at Renault, working with Carlos Ghosn, before taking the top job at PSA Group. He was credited with turning it around and orchestrating a merger with Fiat Chrysler to form Stellantis in 2021.
Company’s Performance
Stellantis has suffered a dramatic fall in sales and profits, particularly in North America. Dealers are struggling to shift unsold vehicles, which customers don’t want to buy. The company is also criticized for producing too many cars of the wrong type, failing to adapt to changing customer tastes, and losing ground to more dynamic rivals.
Impact on Luton
The planned closure of Stellantis’ Vauxhall van making factory in Luton will put about 1,100 jobs at risk. David Bailey, professor of business economics at Birmingham Business School, said that everything is up in the air regarding the future of Stellantis’ operations in the UK.
Timeline
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September: Stellantis issues a profit warning after reporting a sharp drop in sales in North America.
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Last week: The firm announces plans to close its Vauxhall van making factory in Luton, putting about 1,100 jobs at risk.
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December 2, 2024: Carlos Tavares resigns as CEO of Stellantis due to a boardroom clash.
Background
Reasons for Departure
Challenges Facing Stellantis
Stellantis has been facing significant challenges in recent months. The company’s share price has fallen by 40% since the start of this year, a far worse performance than its rivals. In addition, the company has struggled with sales and profits in North America, leading to a profit warning in September.
The closure of the Vauxhall van making factory in Luton is expected to have a significant impact on the local economy, with estimated losses of £310m. However, it remains unclear whether this decision can be reversed.
Future of Stellantis’ Operations in the UK
Professor David Bailey from Birmingham Business School has expressed concerns about the future of Stellantis’ operations in the UK. He stated that “everything is up in the air” and that there are no guarantees about the company’s continued presence in the UK.
Quotes from Experts
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“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the chief executive.” – Henri de Castries
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“What’s really, really driving that, I think, is the situation in North America where they’ve had appalling results, a very dated product line-up, rising inventories and slipping market share as a result of which all the stakeholders involved – suppliers, dealers, workers, investors – are deeply unhappy.” – David Bailey
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