Stellantis is searching for a successor to current CEO Carlos Tavares, whose contract is set to expire in early 2026.
The information was first reported on Tuesday by Bloomberg, citing confirmation from the automaker.
Stellantis told the news agency that it was normal procedure to initiate a search for a successor to Tavares in anticipation of his contract expiring, and that it remained possible that Tavares, 66, will stay in the top job.
Tavares has served as CEO of Stellantis since the company was formed in 2021 following the merger of Fiat Chrysler Automobiles and France's PSA Group. He managed to make some efficiency improvements across the company's 14 brands shortly after the merger, but he has come under fire this year with Stellantis in July reporting a decline of 48% in net profits year-over-year.
Stellantis brands
The decline was mostly due to falling sales in the U.S., where dealers are also angered by some of the strategies Tavares has been executing. Many of their grievances were listed in an open letter to Tavares issued in August by the Stellantis National Dealer Council. According to the Detroit Free Press, the letter included complaints about "reckless short-term decision-making” to secure record profits in 2023, plus the “rapid degradation” of Stellantis' U.S. brands, which include Chrysler, Dodge, Jeep, and Ram.
Stellantis in September responded to the letter, stating that it has developed a plan with the dealer body to help boost sales and reduce inventories.
Stellantis has also initiated some cost cutting this year, and Tavares in July warned that some brands could be dropped if they continue to underperform.
The company's board of directors is due to meet on Oct. 9-10 to evaluate some of the plans put in place to turn around the U.S. operations, Bloomberg reported, citing people familiar with the matter.
