Stellantis Begins Search For A Successor For Tavares

Stellantis has officially begun the search for a successor to CEO Carlos Tavares, whose contract expires in January 2026. The automaker stated that while it is seeking a new leader, Tavares could extend his tenure beyond this date.

Since taking the helm in 2021, Tavares has faced increasing pressure to revitalize Stellantis’ North American operations, which have recently reported significant declines in sales and profits. This downturn has raised investor concerns and negatively affected the company’s stock price.

Criticism has also come from consumers and workers, who argue that Stellantis has not done enough to boost demand for its vehicles. In response, Chief Financial Officer Natalie Knight announced at a Bank of America Securities virtual conference that the company plans to strengthen its North American position by reducing excessive inventory and lowering vehicle prices.

Despite the current difficulties, Reuters reports that Stellantis Chairman John Elkann has no immediate plans for a leadership change. A source close to Elkann noted that the decision to initiate a search for Tavares’ replacement is standard practice, given the CEO’s contract timeline, rather than a direct response to recent criticism.

Stellantis, which owns brands Alfa Romeo, Chrysler, Dodge, Fiat, Jeep®, and Ram, has traditionally relied on its North American operations for a significant portion of its profits. However, recent earnings reports indicated that this region has slipped to fourth place in profitability.

As Stellantis navigates these challenges, the outcome of the leadership search will be closely monitored by industry stakeholders and analysts, especially as the company seeks to regain its footing in a competitive automotive market.

Source: Reuters