Automotive conglomerate Stellantis confirmed on September 24, 2026, that its Board of Directors, spearheaded by Chairman John Elkann, has initiated a formal search process to identify a successor to Chief Executive Officer Carlos Tavares. While the company stated that Tavares remains in contention for a contract extension when his initial five-year term expires in early 2026, the formal review underscores escalating operational headwinds across the group's global footprint.
The succession inquiry comes during a tumultuous operational period for the owner of Jeep, Ram, Dodge, Chrysler, Peugeot, and Fiat. Once lauded as the automotive sector's most ruthless cost-cutter following the 2021 merger of PSA Group and Fiat Chrysler Automobiles (FCA), Tavares has come under fierce scrutiny from investors after first-half net profit tumbled 48% and operating margins shrank substantially.
Succession Review Amid Rising North American Operational Friction
North America, traditionally the profit engine of the multinational automaker, has become the primary source of financial distress. Misjudged vehicle pricing, outdated powertrain offerings, and aggressive production schedules resulted in bloated dealer inventories across the United States. US dealership councils openly criticized Stellantis leadership in public letters, citing uncompetitive pricing that left dealer lots overflowing with unsold Ram pickups and Jeep SUVs.
Tensions have simultaneously flared with organized labor on both sides of the Atlantic. United Auto Workers (UAW) President Shawn Fain accused Stellantis of violating commitments made in the 2023 national contract, specifically alleging that the company intends to delay reopening the Belvidere assembly plant in Illinois and offshore Dodge Durango assembly, prompting local strike authorization ballots.
“It is normal and prudent corporate governance to prepare succession planning for an enterprise of our scale, as Carlos Tavares' current contract reaches its five-year term.”
Dealer Backlash, UAW Strike Threats, and Electric Vehicle Strategy
In Europe, Stellantis is navigating sluggish consumer adoption of battery-electric vehicles alongside fierce price competition from imported Chinese brands. Stringent European Union carbon fleet targets taking effect in 2025 have further squeezed profitability across mass-market segments.
The board's special succession committee is evaluating both internal executive talent and external candidates from rival automakers, aiming to complete deliberations by late 2025 to ensure an orderly transition for one of the world's largest automotive enterprises.
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