Stellantis Targets Management Changes After Profit Warning
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Stellantis NV CEO Carlos Tavares is planning a major management reorganization in response to the automaker’s recent profit warning, according to people familiar with the matter.
Tavares may present his proposal at a board of directors meeting in the U.S. this week, said the people, who asked not to be identified discussing confidential information. The changes could affect various departments, including finance teams, regional heads and brand executives, they said.
Board members are also expected to discuss the 66-year-old CEO’s future during the two-day meeting, the people said. The event had been scheduled well before Bloomberg reported last month that Chairman John Elkann has begun searching for a successor to Tavares, whose contract ends in early 2026.
A representative for Stellantis declined to comment.
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Tavares, known for his cost-cutting measures, is attempting to regain control after weeks of setbacks that led the automaker to reduce its profit and cash flow expectations for the year. While most European rivals are also struggling with declining demand, the scale and timing of Stellantis’ warning has raised questions about governance at the company.
It’s unclear whether the directors will support the CEO’s restructuring plan, with several other outcomes still possible, the people said. Board members will also focus on turnaround efforts to be implemented in the U.S., Stellantis’ largest profit center, they said.
Stellantis’ U.S. shares extended gains after the news, rising as much as 3.2%. The stock is down about 42% this year.
The Jeep and Dodge maker has been struggling with excess inventory, high-profile departures and declining sales in the U.S. after raising prices more than competitors. Elkann, who is also CEO of Exor NV, Stellantis’ largest shareholder, has become increasingly dissatisfied with the situation in North America, Bloomberg reported last month.
After his appearance before the board, Tavares will travel to Italy, where he’s scheduled to speak at a parliamentary hearing amid concerns over declining auto production in the country.
During a plant visit in Sochaux, France, last week, Tavares struck a defiant tone, stating he will fulfill his mandate to the end and that the current challenges “in no way” call his strategy into question.
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