By ROB HULL
Updated: 21:40 AEDT, 2 December 2024
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The boss of the global car giant that owns Vauxhall has stepped down days after announcing the planned closure of its Luton van factory.
Carlos Tavares, 66, who had led Stellantis since it formed in 2021, sensationally departed with immediate effect over the weekend.
Prior to his role as chief executive at Stellantis, Tavares had spearheaded the PSA Group - made up of Peugeot and Citroen - before it was absorbed by the umbrella company consisting of 14 brands. Stellantis is Europe's second-largest car maker.
Tavares' resignation comes more than a year before his scheduled retirement, which had been confirmed amidst reports of struggling sales, including a slump in demand for electric vehicles.
The car maker recently announced Tavares would depart in early 2026 as part of a wider management-shake-up in a bid to stabilise the company's finances.
However, confirming his departure of 1 December, directors at the company suggested a rift between the CEO and the board had accelerated his decision.
A process to find a replacement will be concluded within the first half of next year, the board claims.
Resignation: Stellantis boss Carlos Tavares has quit just days after the company announced the closure of Luton's Vauxhall factory
In an official statement, Stellantis' senior independent director Henri de Castries 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's premature departure comes shortly after Stellantis confirmed it had slashed its profit forecast for the year and warned of reduced share dividend payouts.
This is a result of a decline in sales, particularly in North America, combined with weakening EV demand and increasing competition from Chinese brands.
Having forecast double-digit profit margins for 2024, Stellantis in September downgraded its expectations to between 5.5 per cent and 7.0 per cent for the year.
The car maker recently announced Tavares would retire in early 2026. However, confirming his departure of 1 December, directors at the company suggested a rift between the CEO and the board had accelerated his decision.
Tavares only last week oversaw the announcement of the planned closure of Vauxhall's Luton plant next year.
Shuttering the factory will put 1,100 UK jobs at risk, though staff have been offered relocation support if they were to accept roles at its Ellesmere Port electric commercial vehicle plant in the North West.
The car giant said the decision was made 'within the context of the UK's ZEV (Zero Emissions Vehicle) mandate'.
Tavares has repeatedly spoken out on the ZEV mandate and the strict electric car sales targets it demands from manufacturers, with the threat of fines for each model sold below the ZEV threshold. In 2024, the requirement is for 22 per cent of all sales to be zero emissions.
In April, he said the mandate could see Stellantis slash the number of cars it sells in Britain, even refusing to rule out halting sales of some models altogether.
He went on to describe the scheme as a 'terrible' policy that could 'kill' the domestic car industry.
During the Paris motor show in October, Tavares then warned that Stellantis would have to make a 'correction' to its UK business in response to the mandate's impact on its profitability.
The planned closure of Vauxhall Luton, which dates back 120 years, was announced in a statement just a month later.
Tavares only last week oversaw the announcement of the planned closure of Vauxhall's Luton plant next year
Shuttering the factory will put 1,100 UK jobs at risk, though staff have been offered relocation support if they were to accept roles at its Ellesmere Port electric commercial vehicle plant in the North West
The car giant says the process of finding Tavares' successor for early 2025 is already 'well under way'.
Until a new CEO is appointed, a new Interim Executive Committee, fronted by Stellantis chair John Elkann, will be established, the company says.
Elkann added: 'Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis.
'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.'
Tavares' career in the motor industry spans back to the early eighties.
Having started out at Renault, he had a seven-year stint at its Alliance partner Nissan between 2004 and 2011 before returning to the French manufacturer.
He joined the PSA Group as CEO in 2014, before helping the company merge with Fiat Chrysler to form Stellantis in 2021.
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