Stellantis CEO eyes management shakeup as pressure mounts

AMSTERDAM: Stellantis NV chief executive officer Carlos Tavares is planning a deep management reshuffle in response to the automaker’s disastrous profit warning, according to people familiar with the situation.

Tavares may present his proposal at a board of directors meeting in the US this week, said the people, who asked not to be identified discussing internal matters.

The cuts could affect various departments, from finance teams to regional heads as well as 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 planned well before Bloomberg reported last month that chairman John Elkann has started looking for a successor to Tavares, whose contract ends in early 2026.

A representative for Stellantis declined to comment.

Tavares, an avid cost-cutter, is trying to regain control after weeks of setbacks that led the automaker to slash its expectations for profit and cash flow for the year.

While most European rivals also are struggling with waning demand, the magnitude and timing of Stellantis’ warning has raised questions on governance at the automaker.

It’s unclear whether the directors will back the CEO’s shakeup plan, with several other outcomes still possible, the people said. Board members also will be focusing on turnaround efforts to be put in place in the US, Stellantis’ single biggest profit pool, they said.

The Jeep and Dodge maker has been grappling with bloated inventories, high-profile departures and slumping sales in the US after raising prices more than peers.

Elkann, who is also CEO of Exor NV, the largest shareholder in Stellantis, has been increasingly dissatisfied with the situation in North America, Bloomberg reported last month.

After his appearance before the board, Tavares will be travelling to Italy where he’s due to speak at a parliamentary hearing amid worries over declining auto production in the country.

In a plant visit in Sochaux, France last week, Tavares struck a defiant tone and said he will stick to his mandate to the end and that the current headwinds "in no way” put his strategy in question.