The boss of car making giant Stellantis, Carlos Tavares, has quit with immediate effect following a boardroom clash.
His abrupt exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – comes two months after Stellantis issued a profit warning.
Last week, the firm also announced plans to close its Vauxhall van making factory in Luton, putting about 1,100 jobs at risk.
Before his resignation, Mr Tavares was one of the most powerful people in the global motor industry.
In a statement announcing Mr Tavares’ departure, Henri de Castries, Stellantis’ senior independent director said: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference 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.”
Mr Tavares had a reputation as a ruthless cost-cutter.
He made his name at Renault, working with the colourful and controversial chief executive, Carlos Ghosn, before taking the top job at PSA Group.
At the time, the French group was close to bankruptcy. He was credited with turning it around before orchestrating a merger with Fiat Chrysler to form Stellantis in 2021, creating a global giant.
“He was known for being able to turn around companies that were troubled,” Hans Greimel, Asia editor at Automotive News, told the BBC.
However, Mr Tavares’ position has been undermined recently by a dramatic fall in sales and profits at the company.
“Critics would say he was just cost-cutting too much and delaying products and also hurting quality,” said Mr Greimel.
In September, Stellantis had issued a profit warning after it reported a sharp drop in sales in North America.
Dealers found themselves struggling to shift a glut of unsold vehicles, which customers simply didn’t want to buy.
The company was criticised for producing too many cars of the wrong type, failing to adapt to changing customer tastes and losing ground to more dynamic rivals.
Prof David Bailey from the Birmingham Business School, told the BBC’s Today programme that while there is “huge turmoil in the car industry generally” Stellantis has its own “particular problems”.
He said: “What’s really, really driving that, I think, is the situation in North America where they’ve had appalling results, a very dated product line-up, rising inventories and slipping market share as a result of which all the stakeholders involved – suppliers, dealers, workers, investors – are deeply unhappy.
