Mon Sep 23 21:52:48 UTC 2024: ## Stellantis Seeks New CEO Amidst Financial Struggles and Criticism

**DETROIT** – Amidst declining profits and criticism from both U.S. dealers and the United Auto Workers union, Stellantis, the parent company of Jeep and Ram, is searching for a new CEO to succeed Carlos Tavares. While the company insists this is part of a normal leadership succession plan, with Tavares’ five-year contract set to expire in 2026, many believe the search signals his impending departure.

Tavares has faced increasing pressure following a dismal first-half financial performance marked by excessive high-priced inventory and declining sales in North America, the company’s previously most profitable region. He has implemented cost-cutting measures, including factory delays, layoffs, and buyouts, which have drawn ire from both the UAW and dealers.

The company’s first-half net profits were down 48% compared to the previous year, with U.S. sales dropping nearly 16% despite a 2.4% rise in overall new vehicle sales. This led the U.S. dealer council to demand discounts to move vehicles off lots, while UAW president Shawn Fain called for Tavares’ dismissal after Stellantis delayed the reopening of a factory and the construction of a new electric vehicle battery plant in Belvidere, Illinois.

Despite the ongoing challenges, Stellantis insists it is committed to fulfilling its promises regarding Belvidere and the battery plant, and is working with dealers to reduce inventory. They highlight progress in July and August, with a target of cutting inventory by 100,000 units by the start of next year.

However, the company’s struggles have led to a growing sense that a change at the helm is needed. While Stellantis maintains that Tavares may stay on longer, the confirmation of the CEO search, coupled with the recent departures of several U.S. executives, suggests a shift in leadership is likely. The company is aiming for a smooth transition, but the pressure is on to find a new CEO who can steer Stellantis back to profitability and address the concerns of its stakeholders.

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