Carlos Tavares, the chief executive of global automaker Stellantis, has resigned more than year ahead of his planned retirement.

One of the most respected executives in the auto industry, Tavares was renowned for his sweeping cost-cutting measures

One of the most respected executives in the auto industry, Tavares was renowned for his sweeping cost-cutting measures

His departure was announced in a statement on Sunday by Stellantis – parent group of Vauxhall/Opel, Fiat, Peugeot, Jeep and Citroën among other brands – two months after it issued a profit warning and a week after it warned of plans to close the historic Vauxhall Luton van plant.

Stellantis said the process to appoint the new permanent chief executive officer was well underway, managed by a special committee of the board, and would be concluded within the first half of 2025. Until then, a new interim executive committee, chaired by John Elkann, will be established.

One of the most respected executives in the auto industry, Tavares had led Stellantis since it was formed in 2021 and headed up Groupe PSA for seven years before that. He is credited with having returned PSA to profitability and also turning around Vauxhall/Opel after the automaker was acquired by PSA from GM in 2017, thanks to his sweeping cost-cutting measures.

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.”

Tavares was due to leave Stellantis in early 2026 as part of a management shake-up, and his sudden departure follows reports of a boardroom clash over future direction after Stellantis issued a profit warning in September on the back of a sharp drop in sales in North America. The brand had been left with an oversupply of vehicles and was offering discounts to try to resolve the issue. According to reports, the board felt Tavares was moving too quickly and focusing on near-term solutions, rather than ensuring the company’s long-term security.

Stellantis’ senior independent director Henri de Castries commented: “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.”

As of 2023, Stellantis was the world’s fourth-largest automaker by sales. Its current troubles highlight the wider challenges facing the auto industry, including an influx of Chinese brands, changing consumer tastes and the push towards electric vehicles.

On the latter, Carlos Tavares had been a vocal critic of the UK’s ZEV mandate EV sales targets and had threatened to shut its UK plants if changes were not made. The UK government is currently engaging with carmakers over a “fast-track consultation” on the ZEV mandate following a backlash among a number of vehicle makers.