Carlos Tavares, the CEO of Stellantis, has resigned with immediate effect following a boardroom dispute, marking a dramatic shift for the global carmaker behind brands such as Vauxhall, Jeep, Fiat, and Peugeot. His departure comes just two months after the company issued a profit warning and a week after it announced the closure of its Vauxhall van-making plant in Luton, putting 1,100 jobs at risk.

Tavares, who built his reputation as a tough cost-cutter, had led Stellantis since its formation in 2021 following the merger of PSA Group and Fiat Chrysler. Under his leadership, the company initially thrived, but recent struggles have overshadowed his tenure. Stellantis has faced a sharp drop in sales, particularly in North America, where unsold vehicles have piled up, highlighting a mismatch between the company’s production and shifting consumer preferences.

Henri de Castries, Stellantis’ senior independent director, confirmed Tavares’ resignation, stating that recent differences in views between the CEO and the board led to the decision. “Stellantis’ success has been rooted in a perfect alignment between shareholders, the board, and the chief executive, but that alignment has been disrupted in recent weeks,” de Castries said.

Tavares’ career had been defined by his ability to turn around troubled companies. Before joining PSA, he worked at Renault under Carlos Ghosn and was credited with rescuing PSA from the brink of bankruptcy. However, critics argue that Tavares’ aggressive cost-cutting strategies, which included delaying product launches and focusing on efficiency at the expense of quality, may have contributed to Stellantis’ recent troubles.

The company’s sales slump in North America, combined with a stale product lineup, rising inventories, and declining market share, led to widespread dissatisfaction among stakeholders, including dealers, suppliers, and investors. Stellantis’ share price has fallen by 40% this year, underperforming its competitors, and dropped more than 9% following Tavares’ resignation.

Tavares had already announced plans to step down in 2026, but his premature exit now leaves Stellantis searching for a new CEO. The company expects to appoint a successor by mid-2024, with interim leadership headed by John Elkann, the chairman of Stellantis and a member of the Agnelli family.

Tavares had previously raised concerns about the future of Vauxhall’s operations, particularly in light of Brexit and government policies promoting electric vehicles. The closure of Stellantis’ Luton plant, which currently manufactures petrol and diesel vans, remains a key issue. While the company plans to shift electric van production to its Ellesmere Port facility, it is unclear whether Tavares’ departure will impact the Luton closure.

As Stellantis navigates a shifting automotive landscape, including increasing competition from Chinese manufacturers, the company’s future direction will depend heavily on its new leadership.

LONDON: Mohamed Al Fayed, the late owner of Harrods, manipulated managers through tactics of control and surveillance, dismissing those who resisted his influence, a former director has alleged in an interview with the BBC.

Jon Brilliant, who worked in Al Fayed’s private office for 18 months beginning in 2000, revealed that he was offered envelopes of cash totaling around $50,000 (£39,000) in an apparent effort to compromise and control him.

“He tried to own you. And ultimately, I got fired because I couldn’t be bought,” Brilliant claimed.

Culture of Control and Fear

Brilliant described a culture at Harrods where senior managers were discouraged from trusting or communicating with one another, creating an environment that shielded Al Fayed from scrutiny. He alleged that this structure allowed Al Fayed to cover up serious abuses.

“I 100% can see how the management structure and culture was set up to mask it from people,” he said, referring to allegations of abuse against Al Fayed.

Four other former directors anonymously corroborated elements of Brilliant’s account, painting a picture of a workplace rife with mistrust and surveillance.

Cash as a Tool of Manipulation

Brilliant recounted receiving a brown envelope containing $5,000 ahead of a business trip to Seattle. Although he attempted to return the money, Al Fayed insisted he keep it, allegedly asking, “You didn’t need any entertainment?”

Over subsequent trips, Brilliant continued receiving cash in large denominations, a practice he says was intended to create leverage.

Colleagues warned Brilliant that Al Fayed’s aim was to gather compromising information, such as evidence of improper spending, to use as leverage if needed.

Brilliant eventually used some of the cash, with Al Fayed’s approval, to purchase a home after relocating his family to London.

Widespread Surveillance

Brilliant also claimed he was subjected to surveillance, a hallmark of Al Fayed’s management style. He first suspected his phone calls were being monitored in 2002 when words from a private conversation were repeated to him in a meeting.

Another former director said he was warned by Harrods security that his company-owned property was bugged, prompting him to jokingly greet potential eavesdroppers each morning.

High Staff Turnover and Secrecy

Harrods was notorious for its rapid turnover of senior staff under Al Fayed. By 2005, The Sunday Times had recorded 48 dismissals before legal threats ended its coverage. Many departures reportedly involved legal disputes or non-disclosure agreements.

Brilliant, who oversaw projects ranging from Harrods Online to Fulham FC, said lasting in the company required unquestioning obedience.

“You had to just do what you were told, no original thought, no willingness to challenge the status quo,” he said.

Speaking out now, Brilliant hopes his story will encourage others to share their experiences and support victims of alleged abuse.

Harrods, now under different ownership, has not responded to Brilliant’s claims but previously stated it is a “very different organisation” from the one run by Al Fayed.