Stellantis ready to replace CEO Tavares

The decline in sales of Stellantis has caused much concern within the company and investors, generating rumors – which have now proven to be true – regarding the possible replacement of CEO Carlos Tavares. After a period of strong growth, the company’s sales declined under the influence of various factors, including international market conditions, and increased competition in the auto industry.

Stellantis will replace Carlo Tavares with who?

To October the council will discuss the successor to Carlos Tavares. The search for a new CEO of Stellantis has begun, the company itself has announced. Carlos Tavares has been the CEO of Stellantis since January 2021, but his role will cease in 2026. Thus, a company of great importance and size such as Stellantis must begin the search for a suitable replacement, who will have to possess a very high profile in thanks to industrial and managerial qualities, and the ability to face future challenges.

Who will be the successor?

There are already some possible names circulating on the candidate to succeed Tavares, including Luca de Meo (from Groupe Renault), Olivier François (from Fiat and Abarth), Mary Barra (from Opel), Jim Farley (from Ford), Oliver Zipse (from BMW) and Oliver Blume (from Porsche), Jean-Philippe Learned from Alfa Romeo.

Under Tavares’ position as CEO of Stellantis together with the entire Board of Directors which is responsible for the management and strategic choices of the Group.

The president of the group, John Elkanndoes not intend to send alarming signals to the market. The unions, however, are very worried; to be honest, for the October 18th Fim, Fiom and Uilm organize a strike to protest against the 70% drop in production of vehicles in Italy for 17 years now.

In information provided by Bloomberg, Elkann, especially in North America, is quite dissatisfied with the management of Stellantis. In particular, the company situation no longer meets the necessary standards, with a consequent and significant decrease in orders (-18% for North America).

So, net profit in the first half of the year was 5.6 billion euros, down 48% compared to the 10.9 billion achieved at the beginning of 2023.

Concerned about this situation, unions are mobilizing workers and organizing national strikes. This sign of the crisis shows the intensity of dissatisfaction among employees, worried about the future of work and its conditions.

In such a difficult context, Stellantis had to face significant challenges not only on a commercial level, but also in terms of managing relations with unions and workers. This situation is still evolving.

Stellantis, the point of the situation

Meanwhile, the market North American is decreasing by -18% in the first half of the year. Stellantis’ plummeting sales have caused a wave of concern among shareholders and employees, raising questions about the company’s strategy and management. Carlos Tavares, at the helm since 2021, has previously been praised for his restructuring skills. To date, the various challenges, including the transition to electric cars, adaptation to new environmental regulations and the highly competitive market, appear to be quite complex to face. Difficulties that are obviously shared by all European car manufacturers.

Inside the short note that Stellantis sent to AFP, it reads as follows:

“With just over a year to go until the end of a five-year contract signed in January 2021, it is quite normal for a board of directors to examine the topic with the necessary anticipation given the importance of the position, without this presaging future discussions“.