Stellantis CEO Carlos Tavares Plans Leadership Shakeup While Profit Struggles

Stellantis CEO Carlos Tavares is reportedly preparing for a significant management overhaul as the automaker faces financial challenges. The changes come as the company grapples with a profit warning and declining performance, particularly in its North American operations.

Tavares has been under increasing pressure to address Stellantis’ issues in North America, where falling sales and profits have contributed to a sharp decline in the company’s stock value. The global automaker, ranked fourth by sales, is also dealing with weakening demand worldwide and excess inventory, with competition from China intensifying the situation.

The problems are especially acute in the U.S., where Stellantis has been forced to lower prices on its high-margin Jeep models and pickup trucks in response to slowing demand. Last week, the company reduced its 2024 profit outlook and warned of a higher-than-expected cash burn. To counter these setbacks, Stellantis committed to cutting production and offering significant discounts to revive its U.S. business.

Tavares is expected to present his restructuring plan during a board meeting in the U.S. this week. The proposed changes could involve key personnel, including finance teams, regional leaders, and brand executives.

Stellantis has declined to comment on the potential management shakeup. In addition to these discussions, the board is reportedly set to review Tavares’ future with the company during the two-day meeting.

While Stellantis is actively searching for a successor to Tavares, whose contract expires in 2026, the company has also hinted at the possibility of extending his tenure.

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