Shares in European car giant Stellantis tumble after top boss quits abruptly
Shares in European car giant Stellantis have tumbled following the sudden departure of its boss Carlos Tavares.
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. The shares hit their lowest in more than two years.
His resignation from the world’s fourth-largest carmaker – which also owns brands including Opel, Jeep, Fiat, Peugeot, Citroen 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 UK van-making factory next April, putting more than 1,100 jobs at risk.
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.
The company said it would set up a new interim executive committee, led by chairman John Elkann, while it sought a new boss.
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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.”
Sourse: breakingnews.ie