Stellantis is reportedly looking for a new leader
The president of Stellantis confirmed this week that the search for a new leader has begun, as Carlos Tavares’ contract ends in 2026.
For several weeks now, we have been reporting news that is not always positive coming from Stellantis, the automotive giant that oversees the American brands Ram, Jeep, Chrysler, and Dodge.
Whether it’s the 48% profit losses in the first half of 2024, the 16% decline in sales, or the decision to reduce stocks by 100,000 units by the beginning of next year, it’s clear that things are not going well.
When things go awry, the top boss is often singled out. Many accuse Carlos Tavares of being responsible for the “disaster” and the rapid deterioration of the American brands.
However, the current CEO’s contract is set to expire in January 2026, and there are indications that it may not be renewed.
The search for a replacement for Carlos Tavares has begun
In an interview with Bloomberg, Stellantis President John Elkann confirmed that the search for a new CEO has begun. He did not rule out the possibility of renewing Carlos Tavares’ contract after the current agreement expires. Carlos Tavares has been at the helm of Stellantis since its creation when FCA (Fiat Chrysler Automobiles) and PSA (Peugeot Société Anonyme) merged in January 2021 to create what is now the fourth largest global automaker in terms of sales. In total, Stellantis has 14 brands.
When he took office, Carlos Tavares mentioned that each brand had 10 years to prove they deserved to remain within the group, and that has not changed. However, a few months ago, Carlos Tavares himself mentioned that some less profitable brands could be dropped if they did not make money. This sparked rumors about the possible disappearance of Maserati, which were quickly denied.
Sterling Heights plant under scrutiny
At Ram, Carlos Tavares pointed out the Sterling Heights plant in Michigan, where too many newly built 1500 trucks need to be repaired as they come off the assembly line. Quality issues need to be addressed.
Additionally, there is a slowdown in the anticipated growth of electric vehicles in some parts of the world, a reality that forced Stellantis to halt production of the 500e for four weeks.
However, it is not certain that Carlos Tavares’ days are numbered. Bloomberg reports that sources close to the matter claim that the 66-year-old executive will not be replaced. It is “normal” to start a search process for a replacement at times, and Carlos Tavares may even be involved in the process. Also, his age should not be forgotten; perhaps he may want to step down before turning 70.
Another story to follow.
Original content from auto123.
