Stellantis is looking for its next CEO as it faces a 'disaster'
Stellantis (STLA) has started searching for a successor to CEO Carlos Tavares as the automaker faces criticism from both dealerships and union autoworkers, according to multiple reports.
The European automaker behind brands like Jeep, Dodge, and Chrysler, is still open to Tavares staying on beyond the length of his current contract, which is set to expire in 2026, Reuters reports. The search will be led by Stellantis Chairman John Elkann, who has no plans for an immediate changing of the guard, according to Bloomberg News.
A major priority for Elkann is improving Stellantis’ position in the North American market, as sales have slowed and executives have departed, Bloomberg reports, citing people familiar with the matter. Stellantis is also dealing with high levels of inventory and quality issues, which Tavares recently attempted to address during a visit to Detroit.
In recent weeks, Tavares’ leadership has been criticized by the United Auto Workers (UAW) union — which represents 43,000 Stellantis workers — and the U.S. Stellantis National Dealer Council, which warned that “disaster has arrived” at Stellantis. An heir to the Chrysler family also declared his intent to buy back the brand from Stellantis and lambasted Tavares and other executives.
The union has filed unfair labor practice charges against the automaker and is preparing to hold strike authorization votes at one or more of the locals representing Stellantis employees. The UAW accused it of failing to keep to the promises made in its labor contract, while some locals filed grievances over the delays in reopening the Belvidere, Illinois, assembly plant and a reported plan to transfer production of the Dodge Durango to Ontario from Detroit.
“Stellantis has declared war on the American working class,” Fain told members last week. “The company has decided to respond to our support by abandoning their workers, their dealers, their consumers, and the American taxpayer. We’re here tonight to save this company from themselves.”
Stellantis on Monday said it has no made an announcement regarding plans to move the Durango and that there is “indisputable” volatility in the market, which has delayed its electrification plans. Other automakers, including General Motors (GM) and Ford Motor Co., have pushed back or adjusted their plans.
“To be clear, Stellantis has abided, and will continue to abide, by the agreement the parties reached in 2023,” Stellantis North America COO Carlos Zarkenga told Fain over email Monday, according to the company.
Separately from the succession discussions, Italian prosecutors recently named Elkann as part of an investigation into tax fraud. Officials seized more than $84 million of assets from five people, including the Stellantis chair, over allegations they dodged paying local inheritance taxes.
