Stellantis CEO Carlos Tavares Will Retire In 2026

Stellantis has officially announced that its Chief Executive Officer, Carlos Tavares, will retire when his contract expires in early 2026. This marks the end of a tenure that saw Tavares lead the trans-Atlantic carmaker through significant industry shifts and challenges. The company is now actively searching for his successor as it navigates a period of declining profit and market share, especially in the U.S.

The search for a new CEO is already underway, with Stellantis Chairman John Elkann leading a special committee that will make the final decision. The company expects to select Tavares’ replacement by the fourth quarter of 2025, ensuring a smooth transition of leadership.

The news follows months of speculation about Tavares’ future, after a Bloomberg report hinted at succession planning within the automaker. While Stellantis initially downplayed the rumors, stating that it was natural for its board to consider future leadership, it has now confirmed that Tavares will step down.

U.S. Business Challenges and Dealer Tensions – 

Tavares’ retirement comes as Stellantis faces mounting pressure in the U.S. market. Dealers have expressed concerns over vehicle affordability, with Stellantis models becoming less accessible to price-sensitive buyers. This has led to a decline in market share, with dealers attributing the struggles to what they describe as poor decision-making at the top levels of the company.

Last month, tensions boiled over when a Stellantis dealer advisory group publicly criticized Tavares’ leadership in an open letter, calling for stronger measures to address the company’s falling sales in the U.S. market. Stellantis has responded by offering more aggressive incentives to buyers, which it says has already begun to yield positive results.

Financial Pressure and Cost-Cutting Measures – 

Stellantis’ financial struggles have also led to a tighter grip on spending. According to the Wall Street Journal, Chief Financial Officer Natalie Knight has instructed finance teams to closely review all spending, particularly with outside vendors, as part of an internal strategy known as “the doghouse.” Knight, who joined Stellantis in 2023, is among several top executives stepping down in the wake of these financial challenges.

The automaker has admitted that its efforts to reduce vehicle inventories in the U.S. contributed to a recent profit warning, underscoring the difficulties it faces as it tries to regain footing in one of its key markets. This profit crunch has triggered a wave of management changes, with both Knight and Carlos Zarlenga, Stellantis’ Chief Operating Officer for North America, set to leave their posts.

Leadership Transition Amid Broader Shake-Up – 

Tavares’ planned retirement and the exit of other high-ranking executives mark a year of significant turnover for Stellantis. Several high-profile figures within the company’s brands and operations have departed in recent months, signaling a period of transition as the automaker looks to reset its strategy.

As Stellantis prepares for a new chapter, the company remains focused on reviving its performance in the U.S. market and navigating the ongoing shift toward electrification, despite General Motors (GM) and Ford moving to more hybrid production. Tavares’ successor will inherit the challenge of steering the company through these changes while addressing the concerns of dealers and investors alike.

Source: The Wall Street Journal