Stellantis CEO Search Amid North America Struggles

Stellantis Chairman John Elkann has initiated a search for a successor to CEO Carlos Tavares, whose contract expires in early 2026, as part of regular succession planning. Despite Tavares's significant achievements, including the merger that formed Stellantis, his leadership faces scrutiny due to poor performance in the US market, which has seen a 48% drop in profits and a 14% decline in revenue in the first half of 2024. The company's North American struggles have led to criticism from local dealers and the United Auto Workers union. While Tavares will be included in the search process for a new CEO, and there is potential for his contract extension, Elkann's dissatisfaction with the current situation has triggered the search. Stellantis aims to address its issues by slashing inventories and cutting vehicle prices to reinvigorate demand.