Last year, Stellantis, the automaker that recorded the 5th highest global sales, is facing deepening management difficulties amid a leadership vacuum. The issues such as tariff impacts in the U.S., poor performance, and declining stock prices have highlighted the importance of the next leader's role.
According to industry sources on the 18th, Stellantis is accelerating the selection process for its next chief executive officer (CEO). It is reported that they are narrowing down candidates to a total of five, including two internal candidates and three external nominees.
Stellantis has been operating under a temporary board led by Chairman John Elkann since former CEO Carlos Tavares resigned during his term at the end of last year. Tavares served as CEO from the time the merged group was launched in 2021 but stepped down after four years amid deteriorating management conditions.
Stellantis plans to finalize the appointment of a new CEO in the first half of this year, but concerns are rising about the prolonged management vacuum due to increasing domestic and international uncertainties like the U.S. tariff pressures. Before Tavares resigned last October, there was also a major reshuffle of the executives.
On the 3rd of this month at 1:01 p.m. (Korea time), the U.S. imposed a 25% tariff on all imported cars. This tariff has impacted General Motors, Ford, and Stellantis, which have factories overseas. As a result of the tariff, Stellantis temporarily halted operations at its factories in Canada and Mexico and laid off about 900 workers across five U.S. factories.
Since the launch of the group, Stellantis has been suffering from poor performance due to declining demand in the U.S. and European markets and delays in launching new vehicles. Last year's revenue decreased by 17% compared to the previous year, and net profit dropped by 70%. As the company pushes for expense reduction, tensions with labor unions and dealers are also intensifying.
Stellantis Korea, the domestic entity, plans to rebound by launching new cars amid poor sales. According to the Korea Automobile Importers and Distributors Association (KAIDA), last year, sales of Peugeot and Jeep amounted to 3,575 units, a 45.3% decrease from the previous year (6,583 units). This year, they aim to increase sales by up to 30% compared to the previous year.