Stellantis Management Reshuffle

(Reuters) – Stellantis CEO Carlos Tavares is planning a deep management reshuffle amid the automaker's profit warning, Bloomberg News reported on Wednesday, citing sources.

Tavares has faced mounting pressure to rectify the automaker's North American operations, where a steep fall in sales and profit have triggered a significant drop in the company's share price.

The world's fourth biggest automaker by sales is confronting weakening global demand and an inventory surplus amid tough competition from China.

The current problems are more pronounced in the United States, where Stellantis has been forced to lower prices on some of its high-margin Jeeps and pickup trucks due to slowing demand.

Last week, Stellantis (NYSE: STLA) cut its 2024 profit forecast and warned it would burn more cash than expected, as it promised to reduce output and offer substantial discounts to revive its business in the U.S.

Tavares may present his proposal at a board meeting scheduled in the U.S. this week. The proposal could affect finance teams, regional heads, and brand executives, among others, the report said.

Stellantis declined to comment on the matter.

The board is also expected to discuss Tavares' future during the two-day meeting, the report added. Stellantis is currently seeking a successor to Tavares, whose contract is set to expire in 2026. However, the automaker has also hinted at the possibility of extending Tavares' tenure with the company.