Stellantis is in Search of a Successor for Carlos Tavares

Stellantis has begun the search for a successor to its CEO, Carlos Tavares, amid rising tensions with dealership networks and autoworker unions. Though there remains a possibility for Tavares to extend his role beyond his current contract, which expires in 2026, sources indicate the company is considering future leadership options. John Elkann, Stellantis Chairman, is spearheading the search but has no immediate plans for a leadership transition.

A key focus for Elkann is strengthening Stellantis’ presence in the North American market, where declining sales and executive departures have created concern. Reports from individuals familiar with the situation suggest the company is grappling with excessive inventory and product quality issues—problems Tavares recently sought to address during a visit to Detroit.

Tavares has faced mounting criticism from both the United Auto Workers (UAW) union, representing 43,000 Stellantis employees, and the U.S. Stellantis National Dealer Council. The council, in particular, has raised alarms, claiming the company is facing a major crisis. Additionally, an heir to the Chrysler family has expressed interest in reacquiring the brand, criticizing the current management team in the process.

In response to grievances, the UAW has lodged charges of unfair labor practices against Stellantis and is preparing strike authorization votes at certain local chapters. The union has accused the company of reneging on promises made in its labor agreements, with some chapters specifically raising concerns about delays in reopening the Belvidere, Illinois, assembly plant and rumors of plans to shift Dodge Durango production from Detroit to Ontario.

UAW President Shawn Fain recently accused Stellantis of abandoning its workers, dealers, and the broader American public, stating that the company has launched an attack on the working class. He emphasized that the union’s objective is to protect the company from making decisions detrimental to its workforce and stakeholders.

In response to these criticisms, Stellantis announced that no official decision has been made regarding the potential relocation of the Durango production. A company spokesperson pointed to ongoing market volatility and its impact on Stellantis’ electric vehicle strategy, echoing similar adjustments made by competitors like General Motors and Ford.

Stellantis North America COO Carlos Zarkenga assured Fain via email that the company continues to uphold its 2023 labor agreements despite the challenges presented by the current market environment.

On another front, Italian authorities have implicated Elkann in a tax fraud investigation. Prosecutors recently seized over $84 million in assets from several individuals, including Elkann, amid allegations of evading local inheritance taxes. This investigation is reportedly unrelated to the company’s succession planning but adds another layer of complexity to the automaker’s challenges.

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