DETROIT -- Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it's just part of a normal leadership succession plan.Tavares has been under fire from U.S.dealers and the United Auto Workers union after a dismal first-half financial performance when the company was caught off guard with too much high-priced inventory on dealer lots.As head of PSA Peugeot, Tavares took control of the Netherlands-based company in January of 2021 when it merged with Fiat Chrysler Automobiles.
Its North American operations had been the company's main source of profits, but have struggled this year amid larger market changes.In a statement Monday, Stellantis said Tavares' five-year contract is a little over a year from its expiration date in 2026.“It is normal for a board to look into the subject with the necessary anticipation given the importance of the position, without this having an impact on future discussions,” the statement said.The company added that it's possible Tavares will stay on longer.But Erik Gordon, a University of Michigan business and law professor, said the company's confirmation of the search likely means that the board has reached a deal for Tavares to leave.“I think they recognize that it's best for the company to have a new CEO,” said Gordon, who has advised corporations on leadership succession plans.
“Stellantis is taking a lot of hits within the U.S.”Companies, he said, try to change leaders in a peaceful and organized way.“They don't want it to look like chaos, they don't want it to look like panic.
They want it to look like this is the normal, responsible way we do things.”Tavares has been trying to cut costs, delaying some factory openings, laying off union workers and offering buyouts to salaried employees.The company reported that first-half net profits were down 48% compared with the same period last year.First-half sales in the U.S.
were down nearly 16%, even though overall new...