Carlos Tavares, the CEO of global automotive company Stellantis, has stepped down immediately. Stellantis, which owns major brands like Chrysler, Peugeot, Jeep, Fiat, and Vauxhall, made this announcement just months after issuing a profit warning.

Henri de Castries, Stellantis’ senior independent director, stated that differences in views between the board and Mr. Tavares led to the decision. His departure also follows Stellantis’ recent decision to close its Vauxhall van factory in Luton, UK, a move expected to impact 1,100 jobs.

Widely regarded as a cost-cutting expert, Tavares gained recognition for turning around struggling companies, first at PSA Group and later at Stellantis after its 2021 merger with Fiat Chrysler. Critics, however, argued that his strategies overly focused on cutting costs, delaying product rollouts, and affecting quality. He frequently voiced concerns about Brexit’s impact on Vauxhall operations and criticized government policies requiring automakers to produce more electric vehicles.

Stellantis, which has seen its share price drop by 40% this year amid declining sales and profits, had already begun searching for Tavares’ replacement in September. Initially, he was expected to remain CEO until 2026, but the board now plans to appoint a new leader by mid-2025. In the interim, the company’s chairperson, John Elkann, will head a temporary executive committee.

The resignation leaves uncertainty about whether Stellantis will proceed with the Luton factory closure or alter its broader strategic plans.