Automotive giant Stellantis, the parent company of brands like Jeep and Chrysler, unveiled on Monday that it started a search for a new Chief Operating Executive (CEO).
The announcement isn’t expected to have an effect on the position of Stellantis’ current CEO, Carlos Tavares, who is under contract until January 2026. According to the company, this is part of the standard succession procedure and Tavares will see out his deal and might remain in the role after that.
Bloomberg also reported that Tavares isn’t under threat of being ousted and that he’ll be included in the search for his successor.
Tavares lately found himself under pressure due to Stellantis’ underwhelming performances in key markets, including the United States. He tried to mitigate the effects of slumping sales with cost-cutting strategies, which included layoffs and reducing the production in U.S. plants, but there are concerns that these moves might have a negative effect on the company’s long-term position in the market.
Stellantis will try to address the struggles in the U.S. by clearing up its bloated inventory and lowering the prices of various models. According to Chief Financial Officer Natalie Knight, the company reduced its inventory by 40,000 cars in the previous two months and aims to clear up 100,000 more units by the end of the year.
Stellantis’ recent struggles had a devastating effect on the company’s stock, which is currently 33% down year-to-date. The company’s shares jumped by 3% to close at $15.45 per share on Monday.