Carlos Tavares, the head of car-making giant Stellantis, has quit with immediate effect after a boardroom clash.
His sudden departure from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – comes two months after Stellantis issued a profit warning.
Last week, the organization announced It plans to close its Vauxhall van manufacturing plant in LutonAbout 1,100 jobs are at risk.
Before his resignation, Mr Tavares was one of the most powerful figures in the global motor industry.
He had a reputation for ruthless cost-cutting at both the French Groupe PSA and then the 2021 merger with Fiat Chrysler at Stellantis.
“He was able to turn around troubled companies,” Automotive News’ Asia editor Hans Greimel told the BBC.
“Critics say they are cutting too much cost and delaying products and damaging quality,” he said.
In a statement announcing Mr. Tavares’ departureHenri de Castries, senior independent director of Stellantis, said “different views have emerged in recent weeks, which led the board and the chief executive to come to today’s decision”.
Mr. Tavares’ position was recently undermined by a dramatic decline in sales and profits at the company.
In September, Stellantis issued a profit warning after reporting a sharp decline in sales in North America.
Stellantis’ share price has fallen 40% since the start of this year, a worse performance than its rivals.
In September, the company said it had begun a search for Mr Tavares’ successor, but expected him to remain in his role until at least 2026.
However, following Mr. Tavares’ departure over the weekend, Stellantis said a new chief executive was expected to be appointed by the middle of next year.
In the meantime, it said it would set up a new interim executive committee headed by firm chairman John Elkann, a member of the powerful Agnelli family of Italian industrialists.
Mr Tavares has often made headlines in the UK by casting doubt on the future of Vauxhall operations, linking it to issues such as Brexit and government plans to force carmakers to build more electric cars.
It is not yet clear whether his departure will affect the planned closure of Stellantis’ Luton plant.
Vauxhall’s Stellantis plant in Luton currently builds petrol and diesel vans and was due to start making the mid-size Vivaro electric van from 2025 before the decision to close it.
The company now plans to integrate its electric van production at its other UK plant in Ellesmere Port, Cheshire.
