Some big changes may be in store for Stellantis as recent leadership changes shake the company. The biggest news is that CEO Carlos Tavares is set to resign and retire in 2026 when his contract expires. Stellantis will continue the search for his replacement through 2025. Several other leadership changes were also announced in October. The question is, what will these changes mean for the company’s major North American auto brands?
Focusing On Key Business Priorities
Stellantis said the series of changes are meant to renew its commitment and focus on key business priorities. The biggest change is obviously the retirement of Tavares, who is the first CEO of the auto company. He took the role when the company was created through the merger of Groupe PSA and Fiat Chrysler Auto. Tavares was previously the CEO of Groupe PSA.
The retirement of the company’s CEO isn’t the only shift. Jeep CEO Antonio Filosa also stepped into the role of North American Chief Operating Officer. The Chief Operating Officer of Enlarged Europe has also stepped down and is leaving Stellantis entirely. Meanwhile, Santo Ficili is taking over the CEO position at both Alfa Romeo and Maserati.
Currently, the outlook for Stellantis is a bit rough. Sales are down 17% in total across the six brands under the Stellantis umbrella. Previously, Tavares suggested the possibility of discontinuing a few brands that aren’t doing well. This seemed to shine the spotlight on Jeep, Dodge, and Ram due to decreased sales. But those brands still sell a good number of models, and more electric vehicles are coming soon.
Brands That Might Be Discontinued
Jeep, Dodge, and Ram still boast a sizable fanbase, while Alfa Romeo and Fiat sales have dropped quite a bit. Alfa Romeo only recorded 6,826 sales through the first nine months of 2024, while Fiat made a minuscule 786 sales through that same time period. Meanwhile, the Chrysler brand is disappearing fast, with only one model left on sale. That model is the Pacifica minivan. The 300 sedan was recently discontinued.
Industry enthusiasts and watchers have various opinions on why Stellantis seems to be struggling right now. One theory is that getting away from V8 engines in vehicles that were known for having powerful V8s was a mistake. This includes discontinuing the Dodge sports car line of performance engines.
Reasons For Stellantis Struggles
There are several other possible reasons for the struggling brands under Stellantis. Prices for Jeep and Ram models have significantly increased and haven’t adjusted to the changing market conditions. Critics also point out the lack of refreshments in vehicle lineups and how the company has been doing away with popular options, i.e., the V8 Dodge sports cars.
Stellantis is expected to debut several new products in the next few years, including a flexible new platform that can accommodate more than one type of powertrain. This might help it navigate some rough waters in the auto industry. However, the demand for EV models remains unpredictable at best.
In truth, Stellantis may need to focus on surviving the next year or so.
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