Shares in Vauxhall owner Stellantis have tumbled following the sudden departure of its boss Carlos Tavares, just days after the carmaker announced plans to close its Luton factory.
Paris-listed shares in the car giant slumped more than 8% in Monday morning trading after the announcement on Sunday that Mr Tavares had quit after nearly four years in the top spot.
His resignation from the world’s fourth-largest carmaker – which also owns brands including Jeep, Fiat, Peugeot and Chrysler – comes two months after a profit warning as the group has continued to struggle with slumping sales.
Last Thursday, the company also announced plans to shut its Luton van-making factory next April, putting more than 1,100 jobs at risk.
In recent weeks, different views have emerged which have resulted in the board and the chief executive coming to today’s decision
The closure forms part of the group’s proposal to consolidate its UK manufacturing of vans to create an all-electric hub at its Ellesmere Port plant in Cheshire.
It is set to invest £50 million in the Ellesmere Port site and hopes to transfer “hundreds” of Luton jobs to the Vauxhall site in Cheshire.
Stellantis noted on Sunday that the process to appoint a new, permanent chief executive was “well under way”, but also signalled Mr Tavares’s departure followed a clash in the boardroom.
Henri de Castries, Stellantis’s senior independent director, said on Sunday that the group’s success had been “rooted in a perfect alignment” between shareholders, the board and the chief executive.
“However, in recent weeks, different views have emerged which have resulted in the board and the chief executive coming to today’s decision,” he said.
Although not a surprise, the early and immediate departure of chief executive Carlos Tavares leaves the group without leadership at a time of critical decisions
The company said it would set up a new interim executive committee, led by chairman John Elkann, while it sought a new boss.
As head of PSA Peugeot, Mr Tavares took control of the Netherlands-based company in January 2021 when it merged with Fiat Chrysler Automobiles.
Its North American operations had been the company’s main source of profits, but struggled this year amid larger market changes.
Analysts at Jefferies said: “Although not a surprise, the early and immediate departure of chief executive Carlos Tavares leaves the group without leadership at a time of critical decisions.”