{"id":12740,"date":"2024-09-24T04:35:47","date_gmt":"2024-09-24T04:35:47","guid":{"rendered":"https:\/\/topat10.com\/?p=12740"},"modified":"2024-09-24T04:35:47","modified_gmt":"2024-09-24T04:35:47","slug":"auto-giant-starts-looking-for-a-new-boss-with-over-a-year-left-on-the-current-ceos-contract","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=12740","title":{"rendered":"Auto giant starts looking for a new boss with over a year left on the current CEO\u2019s contract"},"content":{"rendered":"\n

Struggling Jeep and Ram maker Stellantis<\/a> is looking for a CEO to succeed Carlos Tavares, but the company says it\u2019s just part of a normal leadership succession plan.<\/p>\n

\n

Tavares has been under fire from U.S. dealers and\u00a0the United Auto Workers union<\/a>\u00a0after a dismal first-half financial performance when the company was caught off guard with too much high-priced inventory on dealer lots.<\/p>\n

As head of PSA Peugeot<\/a>,\u00a0Tavares took control<\/a>\u00a0of the Netherlands-based company in January of 2021 when it merged with Fiat Chrysler Automobiles. Its North American operations had been the company\u2019s main source of profits, but have struggled this year amid larger market changes.<\/p>\n

In a statement Monday, Stellantis said Tavares\u2019 five-year contract is a little over a year from its expiration date in 2026.<\/p>\n

\u201cIt 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,\u201d the statement said.<\/p>\n

The company added that it\u2019s possible Tavares will stay on longer.<\/p>\n

Tavares has been trying to cut costs, delaying some factory openings,\u00a0laying off<\/a>\u00a0union workers and\u00a0offering buyouts<\/a>\u00a0to salaried employees.<\/p>\n

The company reported that\u00a0first-half net profits<\/a>\u00a0were down 48% compared with the same period last year. First-half sales in the U.S. were down nearly 16%, even though overall new vehicle sales rose 2.4%.<\/p>\n

Growing dealer inventory and high prices brought a rebuke from the head of the U.S. dealers council, who called on the company to boost discounts to move vehicles off of their lots.<\/p>\n

When the company told the auto workers union that it would delay plans to reopen a factory and build a new electric vehicle battery plant in Belvidere, Illinois, UAW President Shawn Fain called for Tavares to be fired.<\/p>\n

The union has filed grievances and threatened to strike over the delays, which the company says are necessary due to market conditions in the U.S. Fain blamed the problem on poor leadership from Tavares and said General Motors<\/a> and Ford are still performing well.<\/p>\n

Tavares told reporters that the global auto industry is caught between\u00a0consumers looking for more affordable vehicles<\/a>\u00a0and demands for more capital spending to develop new electric and gas-powered vehicles.<\/p>\n

In North America, Tavares conceded that Stellantis let inventory get too high, and plans to fix that in the first half didn\u2019t work. Sticker prices, he said, are too lofty and often\u00a0send customers fleeing from showrooms<\/a>\u00a0early in the shopping process even though discounts are available.<\/p>\n

Several U.S. executives, including the heads of the Jeep, Dodge and Ram brands, have left the company in recent months.<\/p>\n

In March, the company said it would\u00a0lay off 400 white-collar workers<\/a>\u00a0in the U.S. as it deals with the transition from combustion engines to electric vehicles.<\/p>\n

In November of 2023 the company\u00a0made buyout and early retirement offers<\/a>to 6,400 nonunion salaried workers. It has not said how many took the offers.<\/p>\n

The CEO search was first reported Monday by Bloomberg News.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it\u2019s just part of a normal leadership succession plan. Tavares has been under fire from U.S. dealers and\u00a0the United Auto Workers union\u00a0after a dismal first-half financial performance when the company was caught off guard with too […]<\/p>\n","protected":false},"author":87,"featured_media":12741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-12740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nAuto giant starts looking for a new boss with over a year left on the current CEO\u2019s contract | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"Tavares has been under fire from U.S. dealers and\u00a0the United Auto Workers union\u00a0after a dismal first-half financial performance.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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