To say Stellantis is in dire straits would be an understatement. Sales are plummeting so sharply in the United States that dealers are accusing Carlos Tavares of the "rapid degradation" of the American brands. In an open letter sent to the CEO, the US Stellantis National Dealer Council warned that the automotive conglomerate is facing a "disaster." We're now learning the big boss will step down, but not until early 2026.
Tavares is the first and only CEO of Stellantis, appointed as the head honcho after the PSA Group merged with Fiat-Chrysler Automobiles in 2021. His five-year contract expires at the beginning of 2026. Although reports were suggesting he could keep his job for longer, that's not going to be the case. According to a press release issued by Stellantis, Tavares "retires at the conclusion of his CEO term in early 2026."
The search process to find a replacement has already started and is being conducted by a Special Committee of the Board chaired by John Elkann who is also Ferrari's chairman. Stellantis says it needs until the end of next year to pick the right person to succeed Tavares. In the meantime, Elkann points out that "the Board of Directors is unanimous in its support of Carlos Tavares and for the decisive changes announced."
What are those changes you ask? Davide Grasso and Jean-Philippe Imparato are no longer the CEOs of Maserati and Alfa Romeo, respectively. Santo Ficili has been appointed Chief Executive Officer of both Italian high-end brands. Grasso will stay with Stellantis but in a different position. As for Imparato, he is now Chief Operating Officer (COO) in the Enlarged Europe region by replacing Uwe Hochgeschurtz who is leaving the company. Imparato will also be the CEO of Pro One, the commercial side of Stellantis.
Elsewhere, Antonio Filosa continues as Jeep CEO but will also take on the duties of a North America Chief Operating Officer (COO) to replace Carlos Zarlenga. The latter will assume a different position within the company. Doug Ostermann takes on the role of the Chief Financial Officer to replace Natalie Knight who is leaving.
Tavares had a lot of things to say in recent weeks about what's going on at Stellantis. He blamed bad marketing for Maserati's poor sales. The CEO also pointed a finger at the Sterling Heights factory in Michigan where too many Ram trucks need repairs right after leaving the assembly line. On a related note, Stellantis recently admitted that it has an excess of unsold cars and it's trying to slim down the inventory.
None of the 14 car brands under the corporate umbrella are at risk of facing the chopping block. Well, at least not for the time being. Announced in 2021, the original plan to keep all companies for 10 years is still in place. That means Stellantis will continue to have patience with Lancia, DS Automobiles, Chrysler, and other troubled automakers.
