Stellantis, Tavares targets management reshuffle to revive automotive group

Stellantis CEO Carlos Tavares is reportedly planning a major management reshuffle in response to the automotive group's disastrous profit warning. Tavares could present his proposal during the board meeting being held at the US headquarters in Auburn Hills (Chrysler's historical home) between today and Thursday. The interventions could affect various departments, from finance teams to regional managers, as well as brand executives, according to rumours compiled by Bloomberg.

During the meeting, the board could also discuss thefuture of the ceo, the sources said. The meeting had been planned long before it was revealed that the board chaired by John Elkann had begun looking for a successor to Tavares, whose contract expires in early 2026. Elkann is also ceo of Exor, Stellantis' largest shareholder with 14.3%.

Tavares, 66, who is known for his focus on cost control, is trying to get back on the right foot after weeks of setbacks led the carmaker to revise downwards its expectations for profit and cash flow in 2024. The share price (EUR 12) has lost more than 42% of its value since the beginning of the year. Capitalisation has plummeted to 35 billion. It is not yet certain whether the directors support the ceo's reorganisation plan, according to sources. The board members also intend to focus on turnaround efforts to be implemented in the US, which remains Stellantis' main profit area, at around 50%.

The manufacturer, whose flagship brands in the US include Jeep, Ram and Dodge, is grappling with overstocking due to a misguided sales policy and a slump in sales due to overpricing against less competitive models.

After his appearance before the board, Tavares is expected to travel to Italy where, on 11 October, he is expected to attend a parliamentary hearing as a result of widespread concerns over the calo of production.