Stellantis boss abruptly resigns amid board conflict

The boss of automotive giant Stellantis, Carlos Tavares, has resigned with immediate effect following a conflict within the board of directors.

His abrupt departure from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – comes two months after Stellantis issued a results warning.

Last week the company also announced plans to close its Vauxhall van manufacturing plant in Luton, putting around 1,100 jobs at risk.

Before his resignation, Mr. Tavares was one of the most powerful people in the global auto industry.

In a press release announcing the departure of Mr. Tavares, Henri de Castries, lead independent director of Stellantis, said: “The success of Stellantis since its creation is based on a perfect alignment between the reference shareholders, the board of directors and the general manager.

“However, in recent weeks different views have emerged, leading the board and chief executive to make today’s decision.”

Mr. Tavares had a reputation as a ruthless cost-cutter.

He made his name at Renault, working with colorful and controversial chief executive Carlos Ghosn, before rising to the top job at the PSA group.

At the time, the French group was on the verge of bankruptcy. He is credited with turning things around before orchestrating a merger with Fiat Chrysler to form Stellantis in 2021, creating a global giant.

“He was known for his ability to turn around ailing companies,” Hans Greimel, Asia editor at Automotive News, told the BBC.

However, Mr. Tavares’s position has recently been undermined by a dramatic fall in the company’s sales and profits.

“Critics would say he simply cut costs too much, delayed products and hurt quality,” Mr. Greimel said.

In September, Stellantis issued a profit warning after reporting a sharp decline in sales in North America.

Dealers struggled to sell a glut of unsold vehicles that customers simply didn’t want to buy.

The company has been criticized for producing too many cars of the wrong type, for failing to adapt to changing customer tastes, and for losing ground to more aggressive competitors.

Professor David Bailey of Birmingham Business School told the BBC’s Today program that while there is “huge unrest in the car industry generally”, Stellantis has its own “particular problems”.

He said: “What’s really, really driving this, I think, is the situation in North America where they’ve had terrible results, a very outdated product line, rising inventory and a declining market share, which has left everyone involved – suppliers, dealers, workers, investors – deeply unhappy.

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