Stellantis CEO Carlos Tavares is said to be planning a major management shake-up in response to the auto group’s disastrous earnings warning. It is possible that Tavares will present his proposal during the board of directors meeting held at the American headquarters in Auburn Hills (the historic headquarters of Chrysler), between today and Thursday. The interventions could affect various departments, from finance teams to regional managers, as well as brand executives, according to rumors compiled by Bloomberg.
The sources said that the board of directors may also discuss the future of the CEO during the meeting. The meeting was planned long before it was revealed that the board headed by John Elkann had begun searching for a successor to Tavares, whose contract expires in early 2026. Elkann also serves as CEO of Exor, Stellantis’ largest shareholder with a 14.3% stake.
Tavares, 66, known for his focus on controlling costs, is trying to get back on track after weeks of setbacks that prompted the automaker to revise its earnings and cash flow forecasts in 2024. The stock (12 euros) has lost more than $42% of its value since The beginning of the year. Capitalization collapsed to 35 billion. It is not yet certain whether board members will support the CEO’s reorganization plan, according to the sources. Board members will also focus on efforts turn around It will be implemented in the United States, which remains the main profit area for Stellantis, at about 50%.
The manufacturer, which counts Jeep, Ram and Dodge in the US among its leading brands, suffers from excess inventory due to the wrong commercial policy and the collapse of sales, precisely due to very high prices compared to less competitive models.
Following his appearance before the board, Tavares is expected to visit Italy, where he is expected to attend a parliamentary hearing on October 11 as a result of widespread concerns about the decline in production.
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