Boss of Vauxhall’s parent company resigns suddenly following news of Luton plant closure | Global News
The CEO of the parent company of Vauxhall has unexpectedly resigned, shortly after the announcement of the closure of the car brand’s factory in Luton.
Carlos Tavares, previously highly regarded in the auto industry, faced scrutiny following a profit warning from Stellantis in September.
The company, which produces Jeep, Fiat, and Peugeot, has experienced a 40% decrease in share value this year, primarily due to struggles in the North American market.
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Just months before the announcement of the closure of Vauxhall’s Luton plant, the company had highlighted the need to boost demand for electric vehicles.
In a statement released on Sunday, Stellantis’s board confirmed Tavares’ immediate resignation and the commencement of the search for a replacement CEO.
With Ford Motor seeing a 7% decrease in share value this year and General Motors up by 55%, Tavares, who had planned to retire in 2026, was under significant pressure.
Over 1,100 jobs at Luton’s van-manufacturing plant are at risk, but Stellantis aims to relocate “hundreds” of employees to the Vauxhall site in Ellesmere Port, Cheshire.
The Vauxhall plant in Luton. Pic: PA
The company is currently consulting with unions and employees regarding the proposed changes, which also involve a £50 million investment in the Ellesmere Port factory.
Stellantis has stated it will provide “relocation support” and an attractive package for employees interested in transferring.
In the US, Jeff Laethem, who owns a Stellantis dealership in Detroit, Michigan, expressed relief at the news of Tavares’ resignation.
His dealership has faced challenges over the past year with an increase in inventory and a decrease in sales of previously popular vehicles.
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“It couldn’t get worse,” he stated, noting that a nearby General Motors dealership has not faced the same challenges.
Stellantis dealers expressed concerns in a letter sent to Tavares in September, outlining their worries over the past few months.
