Struggling Jeep and Ram maker Stellantis is searching for an new CEO
Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it’s just part of a normal leadership succession plan
DETROIT — Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it's just part of a normal leadership succession plan.
Tavares has been under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance when the company was caught off guard with too much high-priced inventory on dealer lots.
As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January of 2021 when it merged with Fiat Chrysler Automobiles. Its North American operations had been the company's main source of profits, but have struggled this year amid larger market changes.
In a statement Monday, Stellantis said Tavares' five-year contract is a little over a year from its expiration date in 2026.
“It is normal for a board to look into the subject with the necessary anticipation given the importance of the position, without this having an impact on future discussions,” the statement said.
The company added that it's possible Tavares will stay on longer.
Tavares has been trying to cut costs, delaying some factory openings, laying off union workers and offering buyouts to salaried employees.
The company reported that first-half net profits were down 48% compared with the same period last year. First-half sales in the U.S. were down nearly 16%, even though overall new vehicle sales rose 2.4%.
Growing dealer inventory and high prices brought a rebuke from the head of the U.S. dealers council, who called on the company to boost discounts to move vehicles off of their lots.
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