Carmaker Stellantis NV (NYSE:STLA, EPA:STLA), owner of British car brand Vauxhall, has announced the resignation of chief executive Carlos Tavares with immediate effect.
According to a press release, a rift has emerged between Tavares and the rest of Stellantis’ board.
“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,” said Stellantis’ senior independent director Henri de Castries.
Tavares’ departure comes amid plummeting sales and job cuts at the Amsterdam-based Fiat, Peugeot and Jeep owner.
Stellantis unveiled a 27% year-on-year slide in sales in its latest quarterly earnings report, when Tavares cast doubt over the future of its Vauxhall plants in the UK.
A profit warning was issued earlier in the year as Stellantis began slashing inventory levels at its US dealerships.
Speaking on Tavares’ departure, 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 shares fell another 7% today, bringing year-to-date losses to 45%.