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<!DOCTYPE html><html lang="en"><head><meta charSet="utf-8"/><meta name="viewport" content="width=device-width,initial-scale=1"/><meta name="robots" content="max-image-preview:large"/><title>Is Stellantis Really Out To Replace Tavares?</title><meta name="description" content="Stellantis is public with searching for a successor to Carlos Tavares. Is the clock ticking on the CEO?"/><meta property="og:title" content="Is Stellantis Really Out To Replace Tavares?"/><meta property="og:description" content="Stellantis is public with searching for a successor to Carlos Tavares. Is the clock ticking on the CEO?"/><meta property="og:url" content="https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"/><meta property="og:type" content="article"/><meta property="og:image" content="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltc0a7803c51970dee/66ab9b6ba6d78113cd3522de/Jeep_Wrangler_Rubicon_21.jpg?disable=upscale&width=1200&height=630&fit=crop"/><meta property="oc:keywords" content="Stellantis, Industry"/><link rel="canonical" href="https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"/><script type="application/ld+json">{"@context":"https://schema.org","@type":"Article","datePublished":"2024-09-27T11:15:00.000Z","dateModified":"2024-09-27T11:15:02.278Z","headline":"Is Stellantis Really Out To Replace Tavares?","mainEntityOfPage":"https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-","image":{"@type":"ImageObject","url":"https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltc0a7803c51970dee/66ab9b6ba6d78113cd3522de/Jeep_Wrangler_Rubicon_21.jpg","caption":"Jeep is crown jewel at Stellantis, but quality and product development suffers while attention wasted on lesser brands.","creditText":""},"author":[{"@type":"Person","name":"David Kiley","image":"https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg","url":"https://www.wardsauto.com/author/david-kiley"}]}</script><script type="application/ld+json">{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://www.wardsauto.com"},{"@type":"ListItem","position":2,"name":"Stellantis","item":"https://www.wardsauto.com/automakers/stellantis"}]}</script><link rel="preload" href="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltc0a7803c51970dee/66ab9b6ba6d78113cd3522de/Jeep_Wrangler_Rubicon_21.jpg?width=1280&auto=webp&quality=10&format=jpg&disable=upscale&blur=40" as="image"/><meta property="twitter:card" content="summary"/><script type="text/javascript">window.NREUM||(NREUM={});NREUM.init={distributed_tracing:{enabled:true},privacy:{cookies_enabled:true},ajax:{deny_list:["bam.eu01.nr-data.net"]}}; ;NREUM.loader_config={accountID:"3936348",trustKey:"3288925",agentID:"538600226",licenseKey:"NRJS-26ae6a3b09493bbcc87",applicationID:"538600226"}; ;NREUM.info={beacon:"bam.eu01.nr-data.net",errorBeacon:"bam.eu01.nr-data.net",licenseKey:"NRJS-26ae6a3b09493bbcc87",applicationID:"538600226",sa:1}; ;/*! 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data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt0561d98f510b6100/6745f95cabddb868de2ee179/Volkswagen-ID.2all_Concept-2023-1280-aa5b4b093e6b003d9ed372c0702797225a.jpg?width=700&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt0561d98f510b6100/6745f95cabddb868de2ee179/Volkswagen-ID.2all_Concept-2023-1280-aa5b4b093e6b003d9ed372c0702797225a.jpg?width=700&auto=webp&quality=80&disable=upscale" loading="lazy" alt="" title=""/></div></a><a data-component="keyword" class="Keyword Keyword_variant_standard Keyword_title_volkswagen ContentPreview-Category" data-discover="true" href="/automakers/volkswagen-group/volkswagen">Volkswagen</a><div class="VerticalCard"><div class="VerticalCard-Body"><a class="VerticalCard-Title VerticalCard-Title_displayOption_default" data-testid="preview-default-title" data-discover="true" href="/volkswagen/volkswagen-charting-reset-on-bevs">Volkswagen Charting ‘Reset’ on BEVs</a><a class="VerticalCard-Title VerticalCard-Title_displayOption_mobile" data-testid="preview-mobile-title" data-discover="true" href="/volkswagen/volkswagen-charting-reset-on-bevs">Volkswagen Charting ‘Reset’ on BEVs</a><div class="Contributors Contributors_variant_slimline VerticalCard-ContributorsWrapper" data-component="contributors"><div class="Contributors-InfoWrapper"><span class="Contributors-ByText" data-testid="by-text">by</span><a class="Contributors-ContributorName" data-testid="contributor-name" data-discover="true" href="/author/david-kiley">David Kiley</a></div></div></div><div class="VerticalCard-Footer"><span class="VerticalCard-Date" data-testid="vertical-card-date">Nov 27, 2024</span><div data-module="card-time" class="CardTime"><div data-component="article-read-time" class="ArticleReadTime ArticleReadTime_size_small CardTime-ReadTime"><span>3 Min Read</span></div></div></div></div></div></div><div class="ContentPreview" data-module="content-preview" data-variant="card-vertical"><div class="ContentPreview-Wrapper ContentPreview-Wrapper_variant_cardVertical"><a data-testid="thumbnail" data-discover="true" href="/vehicles/porsche-lotus-retrench-on-bevs"><div class="ContentPreview-ImageContainer"><span data-testid="content-preview-screen-reader-text" class="ContentPreview-ImageScreenReaderText">Lotus Emira V6 ICE 2024</span><img data-testid="content-preview-image" data-component="image" class="ContentPreview-Image" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt63020d1aaa641f69/6745c8d22293747e54587649/LotusEmiraV6ICE2024.jpg?width=700&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt63020d1aaa641f69/6745c8d22293747e54587649/LotusEmiraV6ICE2024.jpg?width=700&auto=webp&quality=80&disable=upscale" loading="lazy" alt="" title=""/></div></a><a data-component="keyword" class="Keyword Keyword_variant_standard Keyword_title_vehicles 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data-testid="vertical-card-date">Nov 26, 2024</span><div data-module="card-time" class="CardTime"><div data-component="article-read-time" class="ArticleReadTime ArticleReadTime_size_small CardTime-ReadTime"><span>1 Min Read</span></div></div></div></div></div></div></div></div></div></div></div></div></div><div class="MainMenu-MenuItemWrapper"><div class="MainMenu-MenuItem" role="menuitem" tabindex="0" data-testid="openSubMenu" aria-label="Open Sub menu of Industry"><span class="MainMenu-MainTitle">Industry<span data-component="icon" data-name="ChevronDown" class="MainMenu-SubMenuIcon" style="mask-image:url(/build/_assets/ChevronDown-PF4EH6J6.svg);-webkit-mask-image:url(/build/_assets/ChevronDown-PF4EH6J6.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></span></div><div class="MainMenu-SubMenuWrapper"><div class="MainMenu-SubMenuContent"><div data-module="sub-menu" class="SubMenu MainMenu-SubMenu" role="presentation"><div class="SubMenu-Container"><div class="SubMenu-RelatedTopicsWrapper"><h4 class="SubMenu-RelatedTopics">Related Topics</h4><div class="SubMenu-CasualLinkWrapper" data-testid="related"><ul class="SubMenu-CasualLinkList"><li class="SubMenu-CasualLinkItem"><a class="SubMenu-ItemLink" data-testid="sub-menu-item-link" data-discover="true" href="/industry/financials">Financials</a></li><li class="SubMenu-CasualLinkItem"><a class="SubMenu-ItemLink" data-testid="sub-menu-item-link" data-discover="true" href="/industry/regulatory">Regulatory</a></li></ul><ul class="SubMenu-CasualLinkList"><li class="SubMenu-CasualLinkItem"><a class="SubMenu-ItemLink" data-testid="sub-menu-item-link" data-discover="true" href="/industry/suppliers">Suppliers</a></li><li class="SubMenu-CasualLinkItem"><a class="SubMenu-ItemLink" data-testid="sub-menu-item-link" data-discover="true" href="/industry/sustainability">Sustainability</a></li></ul></div></div><div 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data-discover="true" href="/industry/autoline-daily-2024-top-industry-news-for-nov-27"><div class="ContentPreview-ImageContainer"><span data-testid="content-preview-screen-reader-text" class="ContentPreview-ImageScreenReaderText">thumbnail</span><img data-testid="content-preview-image" data-component="image" class="ContentPreview-Image" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt1342204fc8e638f2/6747522cdc555e603b23dfea/daily112724.jpg?width=700&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt1342204fc8e638f2/6747522cdc555e603b23dfea/daily112724.jpg?width=700&auto=webp&quality=80&disable=upscale" loading="lazy" alt="" title=""/></div></a><a data-component="keyword" class="Keyword Keyword_variant_standard Keyword_title_industry ContentPreview-Category" data-discover="true" href="/industry">Industry</a><a class="ContentPreview-IconWrapper" title="Link to all video" data-testid="content-preview-icon-link" data-discover="true" href="/videos"><span data-component="icon" data-name="Play" class="ContentPreview-Icon" style="mask-image:url(/build/_assets/Play-CLWHZVKX.svg);-webkit-mask-image:url(/build/_assets/Play-CLWHZVKX.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></a><div class="VerticalCard"><div class="VerticalCard-Body"><a class="VerticalCard-Title VerticalCard-Title_displayOption_default" data-testid="preview-default-title" style="margin-bottom:0" data-discover="true" href="/industry/autoline-daily-2024-top-industry-news-for-nov-27">Autoline Daily 2024: Top Industry News for Nov. 27</a><a class="VerticalCard-Title VerticalCard-Title_displayOption_mobile" data-testid="preview-mobile-title" style="margin-bottom:0" data-discover="true" href="/industry/autoline-daily-2024-top-industry-news-for-nov-27">Autoline Daily 2024: Top Industry News for Nov. 27</a></div><div 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class="TwoColumnLayout"><div id="portal-root"></div><div class="TwoColumnLayout-Head"><div class="ArticleBase-Header"><ul class="ArticleBase-Topics" data-testid="article-topics"><li class="ArticleBase-Topic"><a data-component="keyword" class="Keyword Keyword_variant_category Keyword_title_stellantis" data-discover="true" href="/automakers/stellantis">Stellantis</a></li><li class="ArticleBase-Topic"><a data-component="keyword" class="Keyword Keyword_variant_category Keyword_title_industry" data-discover="true" href="/industry">Industry</a></li></ul><div><h1 class="ArticleBase-HeaderTitle"><noscript><span class="ArticleBase-LargeTitle">Is Stellantis Really Out To Replace Tavares?</span></noscript><span class="ArticleBase-DefaultTitle" data-testid="article-default-title">Is Stellantis Really Out To Replace Tavares?</span></h1><p class="ArticleBase-HeaderSummary" data-testid="article-summary">Stellantis is public with searching for a successor to Carlos Tavares. Is the clock ticking on the CEO?</p></div></div></div><div class="TwoColumnLayout-Content"><div class="TwoColumnLayout-Body"><div class="ArticleBase-Body" data-testid="article-base-body"><div class="ArticleBase-Contributors" data-testid="article-base-contributors"><div class="Contributors Contributors_variant_normal Contributors_hasAvatar" data-component="contributors"><div class="Contributors-AvatarWrapper"><a class="Contributors-AvatarLink" aria-label="David Kiley" data-discover="true" href="/author/david-kiley"><img aria-hidden="true" data-testid="contributor-avatar" data-component="image" class="Contributors-Avatar" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg?width=100&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg?width=100&auto=webp&quality=80&disable=upscale" loading="lazy" alt="Picture of David Kiley" title="Picture of David Kiley"/></a></div><div class="Contributors-InfoWrapper"><a class="Contributors-ContributorName" data-testid="contributor-name" data-discover="true" href="/author/david-kiley">David Kiley</a><span class="Contributors-ContributorTitle" data-testid="contributor-title">, Senior Editor</span><p class="Contributors-Date" data-testid="contributors-date">September 27, 2024</p></div></div><div data-component="article-read-time" class="ArticleReadTime ArticleReadTime_size_normal"><span data-component="icon" data-name="Clock" class="ArticleReadTime-Icon" style="mask-image:url(/build/_assets/Clock-MSX4SBCD.svg);-webkit-mask-image:url(/build/_assets/Clock-MSX4SBCD.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span><span>3 Min Read</span></div></div><div class="ArticleBase-FeaturedImageWrapper" data-testid="featured-image"><div data-component="captioned-content" class="CaptionedContent"><div class="CaptionedContent-Content"><img data-component="image" class="ArticleBase-FeaturedImage" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltc0a7803c51970dee/66ab9b6ba6d78113cd3522de/Jeep_Wrangler_Rubicon_21.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltc0a7803c51970dee/66ab9b6ba6d78113cd3522de/Jeep_Wrangler_Rubicon_21.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale" loading="eager" alt="" title=""/></div><div class="CaptionedContent-Caption" data-testid="captioned-content-caption">Jeep is crown jewel at Stellantis, but quality and product development suffers while attention wasted on lesser brands.<span class="CaptionedContent-CreditTo"></span></div></div></div><div class="SocialShare"><div data-component="social-share" class="SocialShare SocialShare_variant_button ArticleBase-SocialShare 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ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Stellantis has made it known that it is seeking a successor to CEO Carlos Tavares, 16 months ahead of his contract expiration, a move that is seen in many quarters as a public rebuke of the CEO by the board of directors.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The company confirmed that Chairman John Elkann initiated a search, which includes internal candidates, as part of its normal succession planning. Except it’s not normal for a company to confirm a search publicly when the current CEO still has a job.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Tavares is under tremendous pressure from a falling share price and labor unrest in the U.S. with the UAW threatening a strike at least one of the automaker’s plants in retaliation for what the union says is a violation of the last contract agreement.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The company’s neglect of its two most profitable brands, Jeep and Ram, has put Stellantis on shaky financial footing as it strives to manage an unwieldy stable of brands created in 2021 in a merger of FCA brands Chrysler, Dodge, Jeep, Ram, Fiat, Alfa-Romeo, Lancia and Maserati with Peugeot, Opel, Vauxhall and others.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Not only does Stellantis have a bunch of niche European brands with sketchy business models and futures underperforming in North America, but Jeep and Ram have models on the industry's list of the top-five models with the largest dealer inventories this month, according to multiple sources who publish that list.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The automaker probably also still has too many employees as a legacy of the rollup of three organizations. At the close of 2023, Stellantis had about 272,000 employees against global sales of 6.39 vehicles. That’s 23.4 vehicles for every employee. Toyota, by contrast, produces 30 vehicles per employee. General Motors produces 37 vehicles for every employee. Those numbers show productivity if not profitability, as well as efficiency.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">The trouble for Tavares began after the first half of the year when Stellantis reported net income that was almost halved in the six months through June, compared with 2023, after a massive sales drop in the U.S, and Europe.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Tavares has made a reorganization and cost-cutting his top priorities and the CEO made an uncharacteristic (for Europeans) visit to the company’s North American offices in August to grill brand and business chiefs about where cuts could be made.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Stellantis' barn full of brands is under heavy scrutiny. While all of the group’s brands are important assets and profitable, “there’s absolutely no taboo” if their performance were to deteriorate, Tavares said in late July. The brands “are here to be leveraged,” the CEO said. “If they are not able to monetize the value that they represent, then decisions will come.” Those remarks seem sharply aimed at Chrysler and Lancia, each with just one aging model.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">There has been heavy scrutiny on Tavares for the last six weeks. Several high-ranking North American executives have left the company since May. Tavares is expected to present a turnaround plan in October to the board.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"></p><div><img data-testid="content-image" data-component="image" class="ContentImage-Image ContentImage-Image_align_left" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltd5d7d8ef2f490559/6619760d4485ae858b92cd0b/fiat-500c.jpg?width=700&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltd5d7d8ef2f490559/6619760d4485ae858b92cd0b/fiat-500c.jpg?width=700&auto=webp&quality=80&disable=upscale" loading="lazy" alt="fiat-500c.jpg" title="fiat-500c.jpg"/><p class="ContentImage-Link">Fiat 500c part of wide U.S. brand portfolio.</p></div><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">But will he be hamstrung? The trouble with a largely European board and a chairman (who is connected by blood to the Italian brands at Stellantis) is that they do not see the limitations of those brands in export markets like the U.S. where these brands have little relevance outside a relatively few consumers. Former CEO Sergio Marchionne was compelled to launch Fiat in the U.S., and it has not gone well.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Elkann has clearly decided to turn up the heat on his CEO, left-handedly stating that Tavares will be included in the process of who leads the company starting in 2026. But his reasons could also be diversionary. Elkann himself is in the headlines and in hot water with the Italian government, which alleges the chairman participated in a tax-fraud scheme concerning the estate of his grandmother, Marella Caracciolo, who passed away in 2019.</span></p><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNormal" data-testid="content-text">Most automakers have trimmed their brand trees in the last decade. The two that haven't--Stellantis and Volkswagen Group--are paying the price for inefficiency and holding onto brands that have emotional appeal for European company owners, but make marginal business sense.</span></p></div></div><div class="SocialShare"><div data-component="social-share" class="SocialShare SocialShare_variant_button ArticleBase-SocialShare ArticleBase-SocialShare_second"><a target="_blank" rel="noreferrer" aria-label="Linkedin" href="https://www.linkedin.com/sharing/share-offsite/?url=https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"><span class="SocialShare-IconWrapper SocialShare-IconWrapper_variant_button"><span data-component="icon" data-name="Linkedin" class="SocialShare-Icon SocialShare-Icon_variant_button SocialShare-Icon_type_linkedin" 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class="ContributorSummary ContributorSummary_variant_author"><div class="ContributorSummary-ImageWrapper ContributorSummary-ImageWrapper_variant_author"><a data-testid="contributor-summary-img-link" data-discover="true" href="/author/david-kiley"><img data-component="image" class="ContributorSummary-Image ContributorSummary-Image_variant_author" data-src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg?width=400&auto=webp&quality=80&disable=upscale" src="https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg?width=400&auto=webp&quality=80&disable=upscale" loading="lazy" alt="David Kiley" title="David Kiley"/></a></div><div class="ContributorSummary-InfoWrapper ContributorSummary-InfoWrapper_variant_author"><div class="ContributorSummary-TitleWrapper"><a data-testid="contributor-summary-title-link" data-discover="true" href="/author/david-kiley"><p class="ContributorSummary-Title ContributorSummary-Title_variant_author" data-testid="contributor-summary-title">David Kiley</p></a></div><div class="ContributorSummary-SubTitleWrapper ContributorSummary-SubTitleWrapper_variant_author"><p class="ContributorSummary-SubTitle ContributorSummary-SubTitle_variant_author" data-testid="contributor-summary-subtitle">Senior Editor, WardsAuto</p></div><div class="ContributorSummary-ContentWrapper ContributorSummary-ContentWrapper_variant_author"><div class="ContributorSummary-Content ContributorSummary-Content_variant_author" data-testid="contributor-summary-content"><p class="ContentParagraph ContentParagraph_align_left" data-testid="content-paragraph"><span class="ContentText ContentText_variant_bodyNoneStyle" data-testid="content-text">David Kiley is an award winning journalist. Prior to joining WardsAuto, Kiley held senior editorial posts at USA Today, Businessweek, AOL Autos/Autoblog and Adweek, as well as being a contributor to Forbes, Fortune, Popular Mechanics and more.</span></p></div></div></div><div class="ContributorSummary-SeeMore"><a data-component="button" class="Button Button_size_medium Button_variant_textLink" rel="" data-discover="true" href="/author/david-kiley"><span class="Button-ContentWrapper"><span class="ContributorSummary-SeeMoreText"><span>See more from David Kiley</span><span data-component="icon" data-name="ChevronRight" class="ContributorSummary-SeeMoreIcon" style="mask-image:url(/build/_assets/ChevronRight-NHDKEYGJ.svg);-webkit-mask-image:url(/build/_assets/ChevronRight-NHDKEYGJ.svg);mask-repeat:no-repeat;-webkit-mask-repeat:no-repeat;-webkit-mask-position:center;-webkit-mask-size:contain"></span></span></span></a></div></div></div></div><div data-module="newsletter-signup-promo"><div class="SubscribeBannerTopicPage SubscribeBannerTopicPage_mode_dark SubscribeBannerTopicPage_variant_vertical ArticleBase-Newsletter"><div class="SubscribeBannerTopicPage-Content"><div class="SubscribeBannerTopicPage-Title" data-testid="subscribeBannerTopicPage_title">Subscribe to a WardsAuto newsletter today!</div><div class="SubscribeBannerTopicPage-Message" data-testid="subscribeBannerTopicPage_message">Get the latest automotive news delivered daily or weekly. 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Prior to joining WardsAuto, Kiley held senior editorial posts at USA Today, Businessweek, AOL Autos/Autoblog and Adweek, as well as being a contributor to Forbes, Fortune, Popular Mechanics and more."}]}]}],"gatedWithExternalForm":false,"gatedWithSiteReg":false,"paidGating":false,"sponsorName":""},"template":{"breadcrumbs":[{"url":"/","title":"Home"},{"url":"/automakers/stellantis","title":"Stellantis"}],"topics":[{"__typename":"TopicSecondary","title":"Stellantis","url":"/automakers/stellantis","parentTopic":{"title":"Automakers"}},{"__typename":"TopicPrimary","title":"Industry","url":"/industry"}],"subBrand":null,"searchParams":{},"summary":"Stellantis is public with searching for a successor to Carlos Tavares. Is the clock ticking on the CEO?","title":"Is Stellantis Really Out To Replace Tavares?","mobileHeadline":"Is Stellantis Really Out To Replace Tavares?","authoredBy":"","authoredOn":"","oldUrl":"","buyersJourney":"awareness","contributors":[{"title":"David Kiley","name":"David Kiley","companyName":"WardsAuto","role":"Senior Editor","avatar":"https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt2006289e2f1fa4e1/664cd926bee8aa127953a5fa/kileyhed.jpg","link":"/author/david-kiley","tagLine":"Senior Editor, WardsAuto","summary":[{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"David Kiley is an award winning journalist. Prior to joining WardsAuto, Kiley held senior editorial posts at USA Today, Businessweek, AOL Autos/Autoblog and Adweek, as well as being a contributor to Forbes, Fortune, Popular Mechanics and more."}]}]}],"readTime":3,"newsletterSignUpPromo":{"title":"Subscribe to a WardsAuto newsletter today!","message":"Get the latest automotive news delivered daily or weekly. With 6 newsletters to choose from, each curated by our Editors, you can decide what matters to you most.","newsletterId":"blt9fed09ee18792c0b","buttonText":"SUBSCRIBE","variant":"vertical","mode":"dark"},"socialShare":[{"type":"Linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"},{"type":"Facebook","url":"http://www.facebook.com/sharer/sharer.php?u=https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"},{"type":"Twitter","url":"http://www.twitter.com/intent/tweet?url=https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-"},{"type":"Reddit","url":"https://www.reddit.com/submit?url=https://www.wardsauto.com/stellantis/-is-stellantis-really-out-to-replace-tavares-\u0026title=Is%20Stellantis%20Really%20Out%20To%20Replace%20Tavares%3F"},{"type":"Email","url":"mailto:?subject=Is Stellantis Really Out To Replace Tavares?\u0026body=I%20thought%20the%20following%20from%20WardsAuto%20might%20interest%20you.%0D%0A%0D%0A%20Is%20Stellantis%20Really%20Out%20To%20Replace%20Tavares%3F%0D%0Ahttps%3A%2F%2Fwww.wardsauto.com%2Fstellantis%2F-is-stellantis-really-out-to-replace-tavares-"},{"type":"Print","url":"/"}],"publishedDate":"2024-09-27T11:15:00.000Z","keywords":[],"atAGlance":[],"bodyJson":[{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Stellantis has made it known that it is seeking a successor to CEO Carlos Tavares, 16 months ahead of his contract expiration, a move that is seen in many quarters as a public rebuke of the CEO by the board of directors."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The company confirmed that Chairman John Elkann initiated a search, which includes internal candidates, as part of its normal succession planning. Except it’s not normal for a company to confirm a search publicly when the current CEO still has a job."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Tavares is under tremendous pressure from a falling share price and labor unrest in the U.S. with the UAW threatening a strike at least one of the automaker’s plants in retaliation for what the union says is a violation of the last contract agreement."}]},{"type":"ad","pos":"300_1v_article"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The company’s neglect of its two most profitable brands, Jeep and Ram, has put Stellantis on shaky financial footing as it strives to manage an unwieldy stable of brands created in 2021 in a merger of FCA brands Chrysler, Dodge, Jeep, Ram, Fiat, Alfa-Romeo, Lancia and Maserati with Peugeot, Opel, Vauxhall and others."}]},{"type":"ad","pos":"native_1v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Not only does Stellantis have a bunch of niche European brands with sketchy business models and futures underperforming in North America, but Jeep and Ram have models on the industry's list of the top-five models with the largest dealer inventories this month, according to multiple sources who publish that list."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The automaker probably also still has too many employees as a legacy of the rollup of three organizations. At the close of 2023, Stellantis had about 272,000 employees against global sales of 6.39 vehicles. That’s 23.4 vehicles for every employee. Toyota, by contrast, produces 30 vehicles per employee. General Motors produces 37 vehicles for every employee. Those numbers show productivity if not profitability, as well as efficiency."}]},{"type":"ad","pos":"video_v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"The trouble for Tavares began after the first half of the year when Stellantis reported net income that was almost halved in the six months through June, compared with 2023, after a massive sales drop in the U.S, and Europe."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Tavares has made a reorganization and cost-cutting his top priorities and the CEO made an uncharacteristic (for Europeans) visit to the company’s North American offices in August to grill brand and business chiefs about where cuts could be made."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Stellantis' barn full of brands is under heavy scrutiny. While all of the group’s brands are important assets and profitable, “there’s absolutely no taboo” if their performance were to deteriorate, Tavares said in late July. The brands “are here to be leveraged,” the CEO said. “If they are not able to monetize the value that they represent, then decisions will come.” Those remarks seem sharply aimed at Chrysler and Lancia, each with just one aging model."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"There has been heavy scrutiny on Tavares for the last six weeks. Several high-ranking North American executives have left the company since May. Tavares is expected to present a turnaround plan in October to the board."}]},{"type":"paragraph","attrs":{"textAlign":"left"}},{"type":"figure","attrs":{"figcaption":"Fiat 500c part of wide U.S. brand portfolio."},"content":[{"type":"image","attrs":{"textAlign":"left","src":"https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/bltd5d7d8ef2f490559/6619760d4485ae858b92cd0b/fiat-500c.jpg","alt":"fiat-500c.jpg","title":null,"style":{"float":"center"}}},{"type":"text","text":"Fiat 500c part of wide U.S. brand portfolio."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"But will he be hamstrung? The trouble with a largely European board and a chairman (who is connected by blood to the Italian brands at Stellantis) is that they do not see the limitations of those brands in export markets like the U.S. where these brands have little relevance outside a relatively few consumers. Former CEO Sergio Marchionne was compelled to launch Fiat in the U.S., and it has not gone well."}]},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Elkann has clearly decided to turn up the heat on his CEO, left-handedly stating that Tavares will be included in the process of who leads the company starting in 2026. But his reasons could also be diversionary. Elkann himself is in the headlines and in hot water with the Italian government, which alleges the chairman participated in a tax-fraud scheme concerning the estate of his grandmother, Marella Caracciolo, who passed away in 2019."}]},{"type":"ad","pos":"native_2v"},{"type":"paragraph","attrs":{"textAlign":"left"},"content":[{"type":"text","text":"Most automakers have trimmed their brand trees in the last decade. 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