Jeep, Ram owner begins search for a new CEO as US sales crash

Stellantis, the parent company of Jeep, Ram, Dodge, and several others is searching for a new CEO to replace Carlos Tavares. The company is considering a leadership change after Taveres’ contract expires in 2026. The move comes as Stellantis looks to revamp brand sales in the US, its biggest profit market, as it falls behind rivals.

Stellantis Chairman John Elkann confirmed to Bloomberg News on Monday that the company is indeed searching for a new CEO. The company added that the decision is a regular part of its succession planning.

Sources familiar with the matter said the chairman is unhappy with performance in North America, where sales have slipped.

Stellantis’ US sales crashed 21% in Q2 after falling 10% in the first three months of 2024. Ram (-26%) and Dodge (-16%) sales are both down by double-digits this year, while Jeep (-9%) and Chrysler (-9%) are also down significantly compared to last year. Total US brand sales are down 16% through the first half of 2024.

Several Stellantis brands, including Jeep, Ram, and Dodge, are launching their first EVs in the US later this year, which will be key to turning around slumping sales.

The company confirmed earlier this month that its Sterling Heights Assembly Plant (SHAP) will be the first Stellantis pant to build an all-electric vehicle, the Ram 1500 REV electric pickup, due out later this year.

Jeep and Ram owner Stellantis looks for a new CEO

Jeep will begin delivering its first EV, the Wagoneer S, later this year. It will be built at its Warren Truck Assembly Plant. Jeep will follow it up with plans to launch a Wrangler-inspired Recon EV next year and a new mainstream electric crossover. The company also confirmed it will introduce a Renegade EV for under $25,000.

Meanwhile, Dodge opened orders for its first electric muscle car, the 2024 Charger Daytona R/T, last week. The electric muscle car starts at $59,995, while the high-performance Scat Pack model costs $73,190.

As part of its Dare Forward 2030, Stellantis aims for 50% of US passenger and light-duty truck sales to be electric by 2030.

Stellantis CFO Natalie Knight said fixing issues, including falling profits, bloated inventory, and slumping sales in the US, will be the “top priority” going into the end of the year. The company’s board of directors is set to meet in the US starting on October 9 to devise a plan to revamp brand sales in the region.

A Stellantis spokesperson said it was “normal” to start succession planning given the importance of the CEO position. The spokesperson added that despite its search, Tavares could still remain at the helm.

Source: Bloomberg News