Transformation critical period? European automaker Stellantis begins to look for a new CEO
Recently, Reuters reported that Stellantis has started the process of finding a successor for its CEO Carlos Tavares. Given that Tang Weishi's current term will expire in January 2026, the company believes that starting the successor selection in advance is a reasonable planning step, and it does not rule out the possibility of him staying.
Since the merger of FCA (Fiat Chrysler) and PSA (Peugeot Citroen) to create Stellantis in early 2021, Tang Weishi has always played a leading role and successfully shaped the company into one of the most profitable automakers in the industry. However, he has recently been under pressure due to the double decline in sales and profits of Stellantis' North American business, which has been reflected in the sharp fluctuations in the company's stock price.
Although there have been reports of challenges in the North American business, according to people familiar with the matter, this is not the direct reason that prompted Stellantis to launch a CEO successor search. Instead, the process has been described as a long and complex task.
Looking back at its financial performance, Stellantis' first-half 2024 results released on July 25 showed that its adjusted operating income was 8.463 billion euros, a year-on-year decrease of 40%; its net profit reached 5.65 billion euros, but it also suffered a 48% decrease. In order to reverse the situation, Stellantis has planned to launch a total of 20 new models this year, and hopes that these new models will help the company achieve its profit targets in the second half of the year.