The chief executive officer of Stellantis, Carlos Tavares, has resigned with immediate effect, over differences in the strategic direction of the company.
Stellantis, which owns several vehicle brands including Vauxhall, Peugeot, Fiat and Citroen, said that the process to appoint the new permanent CEO is under way, with an announcement expected in the first half of 2025.
A new Interim executive committee, chaired by John Elkann, will be established until that appointment is made.
Henri de Castries, senior independent director at Stellantis, 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 has been a vocal critic of the UK’s electric vehicle (EV) sales targets contained within the zero emission vehicle (ZEV) mandate.
Last month, Stellantis also announced plans to consolidate its electric van production in the UK at its Ellesmere Port plant, closing its factory in Luton and putting 1,100 jobs at risk.
It blamed the UK’s ZEV mandate, which requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers in the UK to be fully electric vehicles (EVs) this year.
Stellantis chairman, John Elkann, said: “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.”
Stellantis was created in 2021 through the merger of PSA Peugeot and Fiat Chrysler Automobiles.
Stellantis announced that it was looking for a successor for Tavares in September, as part of a planned leadership change. Tavares’ five-year contract was a little over a year from its expiration date in 2026, but the company said at the time that it was possible he might remain in the job beyond that.
However, the company revealed last week that Tavares would be stepping down in early 2026, before he decided to resign with immediate effect over the weekend.
A senior investment banker briefed on the matter told Reuters that the board had grown concerned about Tavares' strategy for turning things around.
In recent months, he had focused mainly on cutting costs, the banker said. The board worried that was leading to quality issues but also restricting the company's ability to develop and design new models.
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
martinwinlow - 02/12/2024 11:56
I'm thinking this is a golden opportunity for a UK vehicle manufacturer to persuade HMG to put its money where its mouth is and instead of *closing* the Luton plant for good, close it only long enough to transform it into a showcase EV production facility - with a *significant* investment from the tax-payer. In doing so, it would not only secure jobs but also signal the government's intention to actually *back* the EV transition rather than just talking about it a lot. At the same time, it would transform the UK's position within Europe and the wider World as a beacon of responsible manufacturing vision and EV manufacturing prowess - which would (if nothing else) cheer everyone the heck up!