- Stellantis is trying to find somebody to switch Carlos Tavares.
- The brand new CEO is not anticipated to start out work till January 2026 when Tavares’ present contract ends.
- Tavares will not get replaced sooner than scheduled, and may really not get replaced in any respect.
To say issues aren’t operating easily at Stellantis can be an understatement. The automotive conglomerate’s internet revenue within the first half of 2024 plummeted by 48% because of weaker demand. Sellers in the US (the place gross sales dropped by 16%) are blaming Carlos Tavares for the “catastrophe” and the “speedy degradation” of the American manufacturers. When the present CEO’s contract expires in January 2026, it may not be renewed.
In an interview with Bloomberg, Stellantis chairman John Elkann confirmed the search has began for a brand new CEO. Elkann, who can also be the chairman of Ferrari, did not rule out a renewal of Tavares’ contract after the present five-year deal runs its course. As a refresher, Tavares was named Stellantis CEO when FCA and PSA merged in January 2021 to create the world’s fourth-largest automaker.
Though the temptation can be to consider Stellantis is getting ready to overthrow Tavares, Bloomberg cites sources near the matter saying that will not occur. A spokesperson for Stellantis mentioned it is “regular” to start out the search course of, including that it may not have “an impression on future selections” as a result of Tavares might stick round past January 2026.
Stellantis has 14 automobile manufacturers underneath its company umbrella, all of which is able to keep there a minimum of till the top of the last decade. The automotive juggernaut lately reiterated it is sticking by its plan introduced in 2021 to spend money on all corporations for 10 years. Nevertheless, it was solely a few months in the past when Tavares threatened to drop unprofitable manufacturers: “If they do not generate profits, we’ll shut them down. We can not afford to have manufacturers that don’t generate profits.”
Whereas corporations reminiscent of DS Cars, Lancia, and Chrysler are identified to be struggling, Maserati is not in an excellent place both. Deliveries to prospects decreased by over 50% within the first half of the 12 months, with Tavares placing the blame on inefficient advertising: “If gross sales are sluggish proper now, it’s a matter of promoting. We’ve additionally improved rather a lot on the standard entrance, however now we have to work on advertising. We lack prospects and leads, we have to attain potential prospects and ship the correct message for the correct positioning.”
At Ram, there are high quality issues. Tavares pointed the finger on the Sterling Heights manufacturing facility in Michigan the place too many newly constructed 1500 pickups have to undergo repairs proper after leaving the meeting line. The 66-year-old government additionally believes Ram did not have the stock it wanted to promote extra vans than it did by June.
A cooling EV market has compelled Stellantis to halt manufacturing of the 500e for 4 weeks. Though the present technology of town automobile is electric-only, that’ll change in 2026 when Fiat will begin gross sales of a hybrid model with a gasoline engine.
Having so many manufacturers is a big enterprise and discovering a alternative for Tavares will not be simple. Stellantis has about 15 months to hunt for a successor, except the Portuguese businessman will persuade the higher-ups he ought to proceed as CEO. That appears unlikely given the present scenario however let’s wait and see how this performs out.
