Stellantis CEO Carlos Tavares Faces Criticism

Stellantis CEO Carlos Tavares has announced he will retire in 2026, prompting the company to seek a successor amid declining U.S. sales and a significant profit warning that has led to a 45% drop in shares this year. Tavares attempted to reassure investors at the Paris Auto Show, acknowledging management changes and promising resolution to U.S. inventory issues by Christmas. However, he faced criticism for high pricing strategies and the elimination of entry-level models, which dealers believe have hurt sales and market share, particularly against competitors like Ford. The recent restructuring, which includes appointing new management, aims to stabilize the company but has not mitigated investor concerns. Tavares’s prior reputation as a visionary leader is now overshadowed by the current crisis, with pressure mounting for him to outline a recovery plan before his departure. As Stellantis navigates increased competition from Chinese manufacturers and shifts in consumer demand, Tavares's decisions in the coming months will be critical for the automaker's future.