Carlos Tavares, the CEO of the car manufacturing giant Stellantis, has resigned abruptly, effective immediately, following a clash within the boardroom. This surprising departure comes two months after the company issued a profit warning and announced plans to close its Vauxhall van manufacturing factory in Luton, putting 1,100 jobs at risk. Tavares was known for his aggressive cost-cutting measures, earning him a reputation as a turnaround expert in the global automotive industry.

His resignation has been associated with Stellantis' recent struggles, which include a significant decline in sales and profits. In September, the company issued a profit warning after reporting a sharp drop in North American sales. Stellantis' share price has plummeted by 40% since the beginning of the year, performing worse than its competitors. According to David Bailey, a professor of business economics at Birmingham Business School, Tavares' position had become untenable due to the company's declining figures, particularly in North America.

The sudden resignation has raised concerns about the future of Stellantis' operations in the UK. The company had previously announced plans to close its Luton plant, which currently manufactures petrol and diesel vans, and intended to start producing electric vans by 2025. However, with Tavares' departure, it is uncertain whether these plans will proceed. Bailey remarked that "everything is up in the air" and indicated that there are "no guarantees" regarding the future of Stellantis' UK operations.

Stellantis has announced that it will set up an interim executive committee led by chair John Elkann to oversee company operations until a new CEO is appointed. The company expects to appoint a new chief executive by the middle of next year. As Stellantis navigates this period of uncertainty, it remains to be seen how Tavares' departure will affect the company's operations and future plans.