Carlos Tavares, CEO of Stellantis, has resigned amid profit warnings and plans to close the Vauxhall plant in Luton.

The head of Stellantis, the automotive conglomerate behind brands such as Chrysler, Vauxhall, Jeep, Fiat, and Peugeot, has resigned with immediate effect.

Carlos Tavares’ sudden departure follows a profit warning issued by Stellantis two months ago. Just last week, the company revealed plans to shut down its Vauxhall van manufacturing facility in Luton, jeopardising approximately 1,100 jobs.

Henri de Castries, Stellantis’ senior independent director, stated that different views have emerged in recent weeks, leading to the decision by the board and the chief executive.

Before his resignation, Mr Tavares was one of the most influential figures in the global automotive industry, known for his rigorous cost-cutting measures at the French PSA Group and later at Stellantis following its merger with Fiat Chrysler in 2021.

In the UK, Mr Tavares often made headlines for expressing doubts about the future of Vauxhall’s UK operations, citing Brexit and government mandates for increased electric vehicle production.

It remains uncertain if his resignation will impact the planned closure of the Luton plant. Mr Tavares’ position had recently weakened due to a sharp decline in the company’s sales and profits. Stellantis’ share price has plummeted by 40% since the beginning of the year.

In September, the company began searching for Mr Tavares’ successor, though he was expected to remain in his role until at least 2026. Stellantis now aims to appoint a new chief executive by mid-next year.

Meanwhile, the company has said it will establish a new interim executive committee, led by Chairperson John Elkann.