Stellantis Chairman John Elkann has initiated the search for a successor to CEO Carlos Tavares, whose contract ends in early 2026. This was confirmed by the automotive group in response to questions from Bloomberg, emphasizing that it is part of normal succession planning. The growing pressure on the CEO, due to Stellantis’ disappointing performance, particularly in North America, which represents the company’s largest profit pool, seriously jeopardizes Tavares’ future in the company.
Stellantis is already looking for Carlos Tavares’ successor, as confirmed by group Chairman John Elkann
John Elkann specified that he does not plan an immediate leadership change and Tavares will be included in the search process. However, the chairman is increasingly dissatisfied with the situation in North America, where sales have slowed and several executives have left the company in recent months.
Carlos Tavares, 66, has embarked on a rigorous cost-cutting path as Stellantis faces weakening demand for electric vehicles and intensifying competition from Chinese manufacturers. In the United States, Stellantis is facing significant challenges, including too high vehicle inventory, quality issues, and a declining market share.
Consequently, the company’s shares have fallen by more than a third this year. A Stellantis spokesperson emphasized that it is “normal” for the board to start considering succession planning, given the importance of the CEO position. However, he also clarified that this does not affect future discussions, highlighting that there is still a possibility that Carlos Tavares could remain in office even after 2026.
Earlier this month, leaders of Stellantis’ U.S. dealer network criticized Tavares for presiding over a “rapid degradation” of the manufacturer’s brands, which also include Ram and Dodge, urging him to spend more money to clear their lots of old inventory. The company also faces the possibility of more strikes in the United States in the coming weeks.
Stellantis stated that solving problems in the United States will be a “top priority” until the end of the year, as stated by Chief Financial Officer Natalie Knight. The company is actively engaged in finding solutions that satisfy all stakeholders, including dealers. Recently, Stellantis announced an investment of over $406 million in three Michigan plants. However, CEO Carlos Tavares has called for further budget cuts to ensure profitability. This request has raised concerns that his push for efficiency could jeopardize long-term projects and revenue streams.
After a drastic sales collapse that nearly halved profits in the first half, Stellantis’ CEO has taken drastic measures to address the crisis, including job cuts and reducing production capacity in American factories and beyond. To protect profits, the company is also selling several assets and has considered the possibility of divesting one or more of the 14 brands that make up the group.