According to Reuters, Stellantis said on Sept.
23 that it was looking for a successor to its chief executive, Carlos Tavares.
Stellantis said it was normal to start looking for a successor now, given that Tang’s current contract expires in January 2026.
But Mr Stellantis added that Mr Tang was also likely to be re-elected at that time.
Since the merger of FCA (Fiat Chrysler) and PSA (Peugeot Citroen) in early 2021, Tang Weishi has led the company and built it into one of the most profitable car companies in the industry.
However, he has been under pressure recently as Stellantis’s North American operations saw record declines in sales and profits, causing its share price to plummet.
However, a source close to Stellantis chairman John Elkann revealed that Stellantis’s North American business woes were not the reason for the company’s search for a CEO successor, and that finding a new chief executive would be a long and complicated process.
Stellantis said its adjusted operating profit fell 40% in the first half of this year due to the weak performance of its profit engine in North America, and its total car inventory reached 1.
4 million.
As a result, Stellantis is under pressure from shareholders, dealers and union employees to reverse falling sales, profits and share prices.
In addition, the company faces a possible strike by the UAW, as the local Stellantis union has begun to prepare for a national strike.
Natalie Knight, chief financial officer of Stellantis, said: “when times are tough, friction is everywhere.
” At the same time, she said she hoped investors would see this year as a transition year for Stellantis rather than the new normal.
The purpose of Tang Weishi’s visit to the United States last month was to develop a plan to make North American business operations no longer lagging behind.
Tang Weishi implemented a radical cost-cutting strategy, including cutting the number of white-collar workers and factory workers.
Natalie Knight said Stellantis executives would continue to restructure the company’s business over the next few years.
Natalie Knight revealed that Stellantis will try to purchase 80 per cent of its auto parts from low-cost countries by 2028, a move that will significantly reduce the company’s overall spending.
Natalie Knight added that Stellantis has also reduced the price of models including Jeep Grand Cherokee and Jeep Compas.
The 2024 Jeep Grand Cherokee.
photo source: Jeep, although Natalie Knight acknowledges that the first half of this year will be difficult for Stellantis, she says she expects the situation to improve by the end of the year.
Stellantis still expects sales of new models to add 15 to 20 per cent to its revenue in the second half of this year, she said.
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