Stellantis May Be Looking for a New CEO to Replace Tavares

US dealers recently blamed Stellantis CEO Tavares for the company’s ongoing financial troubles

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with Brad Anderson

4 hours ago

Stellantis Chairman John Elkann said the company was disappointed with its performance in North America.
Despite growing criticism, CEO Carlos Tavares is expected to stay on with a contract running until 2026.
The auto giant’s profits have fallen 48 percent in six months, increasing pressure on Tavares’ leadership.

Carlos Tavares has a contract to stay with the team Starry Although his term as CEO of the company has been extended until early 2026, that hasn’t stopped company chairman John Elkann from starting the search for Tavares’ successor.

The Portuguese businessman became CEO of Groupe PSA in 2014 and was responsible for turning DS into his own brand, successfully taking over Opel and was instrumental in the major merger between PSA and Fiat Chrysler Automobiles, creating Stellantis. However, Tavares has come under increased scrutiny in recent months due to the company’s poor performance in major markets such as the US.

To read: Stellantis Dealers Slam CEO for ‘Devastating’ Brand Collapse, Company Strikes Back

Elkann is thought to be increasingly uneasy about Stellantis’ direction in North America, unnamed sources said. Bloomberg Tavares’ position as CEO is not under immediate threat and he will be included in the search for a new leader. A Stellantis spokesperson added that it is possible Tavares could stay on longer and sign a contract extension.

Stellantis chief financial officer Natalie Knight says the problems need to be resolved In the USA is a “top priority” for the company and says it is working on solutions that will satisfy all stakeholders, including its dealers. Leaders of the company’s local dealer network have criticized Tavares for leading the brand’s “rapid deterioration” and not doing enough to clear out surging inventories.

Tavares has been responsible for a raft of local layoffs and has reduced capacity at some U.S. facilities, even threatening to cut underperforming brands after it emerged that company profits had fallen 48% in the first six months of 2024. Stellantis quickly withdrew the threatHe said he was committed to all “14 strong, iconic brands” and that iconic companies such as Maserati, Dodge and Chrysler were not for sale.

Stellantis says ongoing investment reviews in the automotive sector are important.

“The economic expectations of the automotive sector require that investments be reviewed in a way that will make maximum contribution to customer satisfaction, company performance and compliance with regulations, especially CO2, without compromising,” he said.