Who will lead Stellantis next? Here are the potential successors to Carlos Tavares as CEO of the automotive giant.
The question of who will be the new CEO of Stellantis is critical for the future of the company. This comes just hours after the resignation of former CEO Carlos Tavares, a move that has placed Stellantis at a crossroads.
The company, facing sharp declines in sales and revenue along with numerous challenges, now hinges on the choice of its next leader.
Toto Nomine: The Search for Stellantis’ Next CEO
The race to identify the new CEO of Stellantis has begun, but the company remains calm and deliberate in its approach. Stellantis’ board of directors, which emerged from the 2020 merger of FCA and PSA and has been led by Tavares since then, has emphasized it will not rush the decision.
Stellantis has announced that the new CEO will be revealed by mid-2025. The selection process, already underway, is being managed by a special committee within the board.
Until the appointment, Stellantis will be managed by an interim executive committee chaired by John Elkann.
The new CEO will face the daunting task of reviving Stellantis, which is currently navigating through turbulent times.
The Profile of the Ideal Candidate
The ideal candidate will need the skills of a leader like Sergio Marchionne, but with a political acumen to rebuild relations with both the United States—to mitigate tariff impacts—and the European Union, which is set to impose stricter regulations on emissions and fuel efficiency.
Among the rumored candidates are Luca De Meo, CEO of Renault Group, and Olivier François, Fiat and Abarth brand CEO and Stellantis’ CMO. However, these remain unconfirmed speculations.
Few executives meet the diverse requirements for this role. While De Meo has orchestrated a turnaround at Renault, leading Stellantis would be a far greater challenge. Elkann might also consider candidates from outside the automotive industry. After all, both Sergio Marchionne and Benedetto Vigna (currently leading Ferrari) came from non-automotive backgrounds.
Given Stellantis’ heavy reliance on the US market, an executive with American experience, such as Antonio Filosa (head of Stellantis’ Jeep division) or Mike Manley (former CEO of Fiat Chrysler), could be ideal.
A swift and credible appointment could turn Tavares’ resignation into an opportunity for Stellantis to reinvent itself.
Challenges for Stellantis’ Next CEO
The next Stellantis CEO will face significant challenges, including managing tense relationships with both President-elect Donald Trump and the European Union. Balancing these priorities seems nearly impossible in today’s volatile political climate.
Tavares, considered a worthy heir to Marchionne, left behind a heavy legacy. In 2023, Stellantis reported an operating margin of nearly 12%, outperforming rivals Ford and GM. For this, Tavares earned a €36.5 million annual salary.
However, 2024 has brought significant obstacles. The company issued a profit warning in September, citing weak performance in the US market, which accounted for over half of its 2023 operating income.
Stellantis’ strength in the US may have been short-lived. Post-Covid production disruptions led to price hikes, but today, vehicles like the Grand Cherokee seem overpriced compared to competitors’ offerings. This has resulted in a surge of unsold inventory and shrinking market share.
US dealers have openly criticized Stellantis, urging it to produce cars that “Americans want to buy and can afford.” Meanwhile, Stellantis’ share price has plummeted, dropping more than 50% since March.
Technological Challenges Ahead
Beyond political issues, the new CEO must address technological challenges. Stellantis must make bold decisions on electric vehicles (EVs) and advanced technologies, such as driver assistance and entertainment systems. Competition from China, which excels in offering affordable EV batteries and cutting-edge tech, poses a severe threat to manufacturers that fail to innovate.
The next CEO of Stellantis will need vision, resilience, and a global perspective to navigate these challenges and restore the company’s position as a leading player in the automotive industry.
Original article published on Money.it Italy 2024-12-02 17:18:40. Original title: Chi sarà il nuovo CEO di Stellantis dopo Tavares?
