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Stellantis CEO Tavares Plans Major Management Shakeup

Addressing Declining Profits and Evolving Market Demands...

Carlos Tavares, CEO of Stellantis, is preparing to implement significant changes within the automaker’s leadership structure in response to mounting challenges in North America and globally. According to a report by Bloomberg News, Tavares aims to address declining sales and profits that have put pressure on the company’s financial outlook and share price. These issues have been especially pronounced in the United States, where Stellantis has struggled with weakening demand, an inventory surplus, and a misaligned product strategy.

Stellantis CEO, Carlos Tavares with the 2023 Alfa Romeo Tonale Veloce. (Alfa Romeo).

A key issue for Stellantis in the U.S. market has been an overproduction of high-end vehicles, including its Jeep® and Ram models, which have historically been profitable but are now facing reduced demand. At the same time, the automaker lacks enough affordable vehicle options for price-sensitive American consumers, an area where rivals are gaining traction. Adding to this, high interest rates have made financing new vehicles more expensive, further hampering sales. Stellantis’ cost-cutting measures, including frequent job cuts at its U.S. plants, have impacted operational efficiency and put a sour taste in consumers’ mouths, negatively affecting sales and brand perception.

Tavares has remained focused on an aggressive electric vehicle (EV) strategy for the U.S., even though many American consumers are still hesitant to fully embrace EVs. With the majority of Americans not yet ready to make the switch, Stellantis’ EV push could be seen as misaligned with market preferences, particularly as other automakers pivot to more flexible approaches, such as hybrid models, to meet consumer demand. Despite this, Stellantis has recently made moves to introduce Chinese-made EVs to the European market through a joint venture with Leapmotor, where it holds a 51% stake, and has used Chinese-produced vehicles in Mexico under the Dodge and Ram names to broaden its global reach.

Dodge Charger Daytona being built at the Windsor Assembly Plant. (Stellantis).

Last week, Stellantis revised its 2024 profit forecast, warning of a higher-than-expected cash burn. The company has pledged to cut production and offer significant discounts to revive U.S. sales. Tavares is expected to present a detailed management reshuffle at a board meeting in the U.S. later this week. The proposal is likely to impact various high-level roles, including finance teams, regional heads, and brand executives, as Stellantis seeks to stabilize its position in a rapidly changing market.

Beyond the proposed management changes, the board will also discuss Tavares’ future with the company. Although his contract is set to expire in 2026, there has been speculation about whether it will be extended or if Stellantis will seek new leadership. Extending Tavares’ contract would be particularly interesting given the tensions between U.S. and Italian unions and the shifting market landscape. Other automakers are adapting their strategies to include more hybrid vehicles, while Tavares has firmly committed to an EV-centric approach.

2025 Ram 1500 Tungsten Crew Cab 4×4. (Ram).

Given Stellantis’ struggles in both North America and Europe, particularly in the Italian market, Tavares faces growing pressure to navigate these challenges swiftly. The company, formed by the merger of Fiat Chrysler Automobiles (FCA) and PSA Group, must now balance consumer demands, economic headwinds, and union concerns while maintaining competitiveness in a volatile global market.

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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As I’ve stated before - put the Frenchman in charge , right? The French understanding of the North American market is well documented with ZERO success stories. All too predictable . And now we begin the corporate revolving door blaming some group of over paid execs who never knew what the heck they were doing to begin with. And twelve months from now his lousy butt Tavares will be gone, and the new group will be gone, shown the door again. Until finally the owners, or their mother or grandmother, or whatever royalty is really calling the shots gets tired off losing their ars, and call the chicomms to sell cheap. Mark it down, it’s coming. Buy your Indian engineered, Iranian designed , Chinese owned Mopar on the cheap!! It’s over boys. Nothing to see here.

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I don't understand why the board is allowing him to change management, when it clearly is him and his Dare Forward 2030 plan which is failing across Europe and the U.S.

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The early reviews are out on the Leap T03. It seems that Stellantis is going out of their way to make sure the quality of the Polish built models for Europe is spot on. Why the heck hasn't this been done for North American products? Fiat and Alfa products have made terrible first impressions to American buyers. The Wagoneer models, the 4Xe power train Jeeps, and Ram's latest all have substandard quality.

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Not sure what he’s thinking? The whole problem or at least with the American Mopar brand is stale product and lack of new product. They finally updated the charger, but they left the gap in between the old one and the new one that was a big mistake on their part. Failing to replace the classic pick up that’s going out of production is another mistake. Cutting Chrysler to one product is another mistake. You’re only gonna have a couple Jeeps and a pick up and one Dodge. That doesn’t sound like a good business move.

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Not sure what he’s thinking? The whole problem or at least with the American Mopar brand is stale product and lack of new product. They finally updated the charger, but they left the gap in between the old one and the new one that was a big mistake on their part. Failing to replace the classic pick up that’s going out of production is another mistake. Cutting Chrysler to one product is another mistake. You’re only gonna have a couple Jeeps and a pick up and one Dodge. That doesn’t sound like a good business move.

Yeah but he can't pull a rabbit out his ash... He didn't decide to Merge he got the Job, Platform consolidation and Fiscal freeze for due diligence are direct outcome of the decision to Merge. He has to deal with it.

For sure the gap until the KM and LBs is a disaster. And please the Chyrsler Brand nonsense is tiresome. They were selling less than 1 300 per month per dealer, that isn't the issue.

We want quality launches but at the same time how do the jump the 6 to 9 month gap created by the merger...

I am not a Fan of him at all but seems this forum has moved from legit reasonable discussions into blame and flame throwing.

I am sorry we were all fans of some of the old leadership, but much of this is on the incumbent team in NA.

And for those who don't know most the 4xe issue are on Samsung, and it not limited to just Jeep.... it would be a bit like blaming Jeep for Takata airbags. Battery are a new world that is going to take adjustment too, since regulators pushed it.

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