Jeep, Ram maker Stellantis looks for new CEO to succeed Carlos Tavares
Date
9/24/2024 5:13:46 AM
(MENAFN) Stellantis, the maker of Jeep and Ram, is searching for a new CEO to succeed Carlos Tavares, who has faced criticism following a disappointing financial performance in the first half of the year. This move is described by the company as part of a routine leadership succession plan, though some industry analysts speculate it may indicate a shift in strategy is needed.
Tavares has led Stellantis since its formation in January 2021, following the merger of PSA Peugeot and Fiat Chrysler Automobiles. The company has traditionally relied on its North American operations for profits, but these have faltered recently due to various market challenges and an excess of high-priced inventory on dealer lots.
In a statement, Stellantis confirmed that Tavares' contract, set to expire in 2026, is under review, and that discussions around leadership are standard practice. However, Erik Gordon, a business and law professor at the University of Michigan, suggested that the board's decision to announce the CEO search might imply an agreement for Tavares to step down.
Gordon noted that companies often prefer to manage leadership transitions smoothly to avoid perceptions of turmoil. Tavares has undertaken various cost-cutting measures, including delaying factory openings, laying off union workers, and offering buyouts to salaried employees. Despite these efforts, Stellantis reported a 48 percent drop in net profits and a nearly 16 percent decline in U.S. sales in the first half of the year, even as overall new vehicle sales increased by 2.4 percent.
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