Vauxhall Parent Firm's Boss Resigns Abruptly - Days after Luton Plant Announced Closure

Carlos Tavares, the CEO of Stellantis, has stepped down abruptly after a turbulent year for the company. The resignation follows Stellantis's announcement that it will close the historic Vauxhall van-making plant in Luton, set for April 2025, putting over 1,100 jobs at risk.

Once one of the most respected leaders in the automotive sector, Tavares faced increasing pressure after Stellantis issued a profit warning in September.

The company's share value has plummeted by 40% this year, driven by weak performance in the North American market, in stark contrast to competitors like General Motors, whose share price has surged by 55%.

The closure of the Luton plant, a 120-year-old symbol of British automotive history, comes as Stellantis seeks to address falling demand for electric vehicles (EVs).

The company is offering relocation support and a £50 million investment in its Ellesmere Port site in Cheshire, which will transition to EV production.

Stellantis aims to transfer "hundreds" of workers to the Cheshire location, though union consultations and discussions with employees are ongoing.

In the U.S., dealers have expressed relief at Tavares's departure. Jeff Laethem, a Stellantis dealer in Detroit, noted significant inventory build-ups and declining sales compared to neighboring General Motors dealerships, highlighting frustrations with Stellantis's recent management.

Stellantis's board has initiated the search for a new CEO, underscoring the urgency of stabilising its operations and rebuilding investor confidence amidst its challenges.
Edited by Evans Momodu
Source: Sky news