Stellantis, the parent company of Jeep, Ram, and Dodge, is actively searching for a new CEO to replace current chief executive Carlos Tavares, whose contract expires in 2026. This leadership change comes as the company struggles with declining U.S. sales in its most profitable market, prompting the need for a revitalized strategy. Chairman John Elkann confirmed to Bloomberg News that the search for Tavares’ successor is part of the company’s regular succession planning.
The decision comes amid dissatisfaction with Stellantis’ performance in North America, where sales have slipped significantly. U.S. sales dropped 21% in the second quarter of 2024, following a 10% decline in the first quarter. Key brands like Ram and Dodge saw steep declines of 26% and 16%, respectively, while Jeep and Chrysler both posted a 9% drop. Overall, Stellantis’ U.S. sales are down 16% through the first half of 2024, raising concerns among leadership and investors.
To counter the downturn, Stellantis is gearing up for an aggressive push into electric vehicles (EVs). The company has confirmed that its Sterling Heights Assembly Plant will begin producing the all-electric Ram 1500 REV later this year, marking Stellantis’ first foray into U.S.-built EVs. Jeep is also preparing to deliver its first electric model, the Wagoneer S, from the Warren Truck Assembly Plant. Additional EV models, including the Jeep Recon and a Renegade EV priced under $25,000, are set to follow. Meanwhile, Dodge recently opened orders for its first electric muscle car, the 2024 Charger Daytona R/T, which starts at $59,995.
As part of its “Dare Forward 2030” plan, Stellantis aims for 50% of U.S. passenger and light-duty truck sales to be electric by 2030, a critical step in repositioning the company as an EV leader. However, Stellantis CFO Natalie Knight emphasized that addressing current issues—including falling profits, excess inventory, and declining sales—will be the top priority through the end of the year. The board of directors is scheduled to meet in the U.S. starting October 9 to devise a strategy for revitalizing U.S. brand performance.
Despite actively searching for a CEO, a Stellantis spokesperson mentioned that Carlos Tavares may continue in his position, although the company considers succession planning standard for an organization of Stellantis’ scale.
