Stellantis is in search of a new CEO to take over from Carlos Tavares. However, the new CEO is not expected to start until January 2026 when Tavares’ contract ends. There is a possibility that Tavares may not be replaced at all. The automotive conglomerate has faced challenges recently, with a 48% decline in net profit in the first half of 2024 due to weaker demand, especially in the United States where sales dropped by 16%. Dealers are holding Tavares responsible for the decline in sales and the degradation of American brands.
In an interview with Bloomberg, Stellantis chairman John Elkann confirmed the CEO search has begun but did not rule out the option of renewing Tavares’ contract after its expiration in 2026. Tavares took over as CEO when FCA and PSA merged in 2021 to create Stellantis, the world’s fourth-largest automaker.
Despite speculations, sources close to the matter suggest that Tavares may not be replaced early. A Stellantis spokesperson mentioned that starting the search process is a normal procedure and may not impact future decisions regarding Tavares’ position. The company reaffirmed its commitment to its 10-year plan, announced in 2021, to invest in all 14 car brands under its umbrella until the end of the decade.
While Tavares previously threatened to shut down unprofitable brands, such as DS Automobiles, Lancia, and Chrysler, the company is facing challenges with Maserati as well. Deliveries have decreased significantly, and Tavares attributed this to marketing inefficiencies. Quality concerns have also been raised at Ram, with issues at the Sterling Heights factory in Michigan and inventory shortages impacting sales.
The cooling EV market has led to a temporary halt in production of the 500e, but Fiat plans to introduce a hybrid version with a gasoline engine in 2026. With the complexities of managing multiple brands, finding a suitable replacement for Tavares poses a significant challenge for Stellantis. The company has a limited time to identify a successor, unless Tavares can convince stakeholders that he should continue as CEO. The situation remains uncertain, and the company’s future leadership direction is yet to be determined.
