Stellantis has lost roughly €2.95bn (£2.44bn) in value as the chief executive of Vauxhall’s parent company abruptly resigned, just days after the car brand’s factory in Luton was slated for closure.
Previously regarded as one of the most respected figures in the auto industry, Carlos Tavares came under scrutiny after Stellantis issued a profit warning in September.
The firm – which also makes Jeep, Fiat and Peugeot – has lost around 40% of its share value this year, with most of the damage coming from the North American market.
On Monday morning stock slid a further 7.8% following the news, worth roughly €2.95bn (£2.44bn).
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And the company had warned of a need to spur demand for electric vehicles a few months before announcing Vauxhall’s 120-year-old plant in Luton will close in April.
In a statement on Sunday, Stellantis’s board accepted his resignation “with immediate effect” and said a search for a replacement is “well under way”.
US rival Ford Motor’s share value has dipped 7% this year, while General Motors’s has risen by 55%, putting Mr Tavares – who had planned to retire in 2026 – under pressure.
More than 1,100 jobs at Luton’s van-making factory are at risk, but Stellantis said it is hoping to transfer “hundreds” to the group’s Vauxhall site in Ellesmere Port, Cheshire.
It is now in consultation with unions and employees over the proposals, which will also see it invest £50m into the Ellesmere Port factory.
The firm added it would offer “relocation support” and “an attractive package” to employees who want the transfer.
In the US, Jeff Laethem, who owns a Stellantis dealership in Detroit, Michigan, said he was relieved at news of Mr Tavares’s resignation.
The last year has been punishing for him as inventory has built up but sales of once-dependable vehicles fell.
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“It couldn’t get worse,” he said, adding a nearby General Motors dealership has not faced the same challenges.
Stellantis dealers have voiced their concern over the past few months, sending a letter outlining their worries to Mr Tavares in September.
