It has been talked about for days now, as what is happening in Stellantis is a true revolution. The group is implementing a profound reorganization of its leadership from one side of the world to the other. The company has announced that CEO Carlos Tavares will retire at the end of his term, scheduled for early 2026. This has triggered an immediate change at the top. But all these changes are taking place in a context where Stellantis faces significant challenges, with responsibilities that can be identified, not simply, in the management of operations carried out by Stellantis, especially in the United States.
Carlos Tavares will leave Stellantis in 2026, but it can’t be said he has done great things
Stellantis’ troubles in the United States include problems with iconic brands such as Chrysler, Jeep, Dodge, and Ram, some of which are in decent health. The company is currently searching for the next CEO to replace Tavares. But what has Carlos Tavares meant for Stellantis, and what has Stellantis been like under this management so far?
The current CEO has been leading the group since its inception in 2021, resulting from the merger between Fiat Chrysler and Peugeot SA. Although 2023 was a successful year in terms of profits, Stellantis has subsequently struggled to keep pace with rivals in the transition to electric mobility.
This seems to be the most painful turning point for the group, which includes 14 brands from Europe to America, and even China with Leapmotor. Meanwhile, prices for Jeep and Ram models have continued to rise, creating tensions with dealers.
With recent communications about expected declining profits and falling stock prices, Stellantis is definitely under pressure. Dealers complain about delays in launching new products and the absence of affordable vehicles, accusing the company of neglecting American brands.
To make matters worse, the clash with the United Auto Workers (UAW) union has further eroded Stellantis’ leadership. The union claims the group has not maintained contractual agreements. It’s inevitable to end up talking about strikes, recently threatened, as well as those that occurred last year.
It doesn’t end there: Michigan’s governor is in negotiations with Tavares to ensure that Stellantis maintains its North American headquarters in the state, while the company is considering moving elsewhere. The reorganization of the group’s facilities in Michigan was accompanied by the announcement of a new Jeep Compass launch. This should be more affordable compared to current models, a move to “stem” criticism. But there are still two long years ahead.