Stellantis is in deep trouble as sales nosedive in the United States, prompting an urgent outcry from dealers accusing CEO Carlos Tavares of the “rapid degradation” of the company’s American brands. In a striking open letter to the automotive giant’s top executive, the Stellantis National Dealer Council in the U.S. has warned of an impending “disaster” if changes aren’t made swiftly.
Amid this turmoil, Stellantis has announced that Tavares, the company’s first and only CEO since the 2021 merger between PSA Group and Fiat-Chrysler Automobiles, will step down when his contract expires in early 2026. This confirmation comes after speculation that Tavares could extend his tenure. Instead, the company’s press release stated that he will “retire at the conclusion of his CEO term,” marking the end of an era for the embattled automaker.
The Search for a Successor Begins
Stellantis has already initiated the process of finding Tavares’ replacement. The search, led by a Special Committee of the Board chaired by John Elkann—who also heads Ferrari—aims to identify the next leader by the end of next year. Elkann emphasized the board’s full support of Tavares and endorsed the sweeping changes he recently unveiled.
Reshuffling the Deck: Major Executive Changes Announced
As Stellantis navigates these turbulent waters, several high-profile executives have been reshuffled. Davide Grasso and Jean-Philippe Imparato, who previously helmed Maserati and Alfa Romeo respectively, have been replaced. Santo Ficili now oversees both Italian luxury brands. While Grasso remains with the company in a different capacity, Imparato has transitioned to the role of Chief Operating Officer for Stellantis’ Enlarged Europe region, replacing Uwe Hochgeschurtz, who is exiting the company.
Imparato will also take the reins of Pro One, the commercial division of Stellantis. In North America, Jeep CEO Antonio Filosa has been tasked with additional duties as the new North America COO, succeeding Carlos Zarlenga, who has been reassigned within the company. Meanwhile, Doug Ostermann has been appointed as the new Chief Financial Officer, replacing Natalie Knight.
A Grim Reality: Sales Slump and Production Woes
Tavares, facing mounting pressure, has been vocal in recent weeks about Stellantis’ struggles. He pointed fingers at various issues, including the poor marketing strategy affecting Maserati’s sales. He also criticized the company’s Sterling Heights factory in Michigan, citing a high rate of Ram trucks needing repairs immediately after production.
Compounding the company’s woes, Stellantis has admitted it is grappling with an oversupply of unsold vehicles and is working to reduce its inventory. Despite the turmoil, Tavares assured stakeholders that none of the 14 brands under Stellantis’ umbrella—including struggling names like Lancia, DS Automobiles, and Chrysler—are currently at risk of being axed. The company’s 10-year plan, announced in 2021, to retain all brands remains in effect, with Stellantis choosing patience for the time being.
What’s Next for Stellantis?
With mounting dealer pressure and restructuring efforts underway, the future of Stellantis hinges on stabilizing its brands and finding a capable successor for Tavares. As the automaker scrambles to regain its footing, industry insiders and stakeholders alike will be watching closely to see if these changes can steer the company back on course.
