Carlos Tavares, the head of Stellantis—the automotive giant behind brands such as Chrysler, Jeep, Fiat, Peugeot, and Vauxhall—has resigned with immediate effect.

Tavares’ sudden departure follows a profit warning issued by the company two months ago and last week’s announcement of plans to shut down the Vauxhall van manufacturing plant in Luton, threatening approximately 1,100 jobs.

Henri de Castries, Stellantis’ senior independent director, stated that recent differences between Tavares and the board had led to the resignation.

Tavares, a key figure in the global automotive industry, was known for his aggressive cost-cutting strategies at the French PSA Group and his role in creating Stellantis through the merger of PSA and Fiat Chrysler in 2021.

In the UK, he often sparked controversy over his skepticism about Vauxhall’s long-term viability, citing challenges posed by Brexit and government mandates for electric vehicle production.

Tavares’ resignation raises questions about the future of the planned Luton plant closure. His position had already been weakened by declining sales and profits; Stellantis’ share price has dropped 40% since the start of the year.

While the company had quietly begun searching for a successor in September, Tavares was expected to remain CEO until at least 2026. Stellantis now aims to appoint a new chief executive by mid-2024. In the meantime, an interim executive committee led by Chairperson John Elkann will oversee operations.

Tavares’ abrupt exit marks a period of uncertainty for Stellantis as it grapples with financial struggles and strategic challenges in the competitive global automotive market.