Although Carlos Tavares is under contract to remain CEO of Stellantis until early 2026, that is not stopping company president John Elkann from already starting the search for Tavares’ successor.
The Portuguese businessman became CEO of the PSA Group in 2014 and was responsible for turning DS into its own brand, the successful takeover of Opel and was instrumental in the merger of PSA and Fiat Chrysler Automobiles, creating Stellantis. However, Tavares has been under increased pressure in recent months due to the conglomerate’s poor performance in large markets such as the US.
Elkann is believed to be increasingly frustrated with how Stellantis is doing in North America. Unnamed sources tell Bloomberg that Tavares’ position is not under immediate threat and that he will be included in the search process for a new leader. The spokesperson of Stellantis added that it is possible that Tavares will stay longer and sign a contract extension.
Stellantis CFO Natalie Knight says resolving the issue in the US is a “top priority” for the company, noting that it is working on solutions that will satisfy all stakeholders, including its dealers. Leaders of the company’s local dealer network criticized Tavares for presiding over the “rapid degradation” of the brand and for not doing enough to help clean up growing inventories.
Tavares is responsible for many local layoffs and has reduced capacity at some American plants. It even threatened to shed underperforming brands after it was revealed that the company’s profits fell by 48% in the first six months of 2024. However, Stellantis quickly backtracked on the threat, saying it was committed to its entire portfolio of “14 powerful, iconic brands ” and that iconic companies, including Maserati, Dodge and Chrysler, are not for sale.
Prepared by: Ivan Mitić – Autoblog.rs
Source: autoblog.rs
