What’s that? You thought running the world’s fourth-largest automaker was basically a paid vacation with a side of business meetings? Apparently to Stellantis’ CEO, yes. 

(Source: Giphy) 

As I’m sure you all know, Carlos Tavares (Stellantis’ top dog), is finding himself neck-deep in a corporate nightmare for doing absolutely nothing productive during his tenure. Which is why now that his company has fallen in the sh**ter - staring down the barrel of a profit warning, he’s pointing the finger and cooking up a deep management overhaul. And it’s not just a little fine-tuning—no, this is a serious reshuffle, with heads potentially rolling across finance teams, regional heads, and brand executives.

(Source: Bloomberg) 

So why now, you ask? Well, it turns out Stellantis’ North American operations are in freefall, and they’re dragging the whole company down with them. Sales are tanking, profits are in the gutter, and the company’s stock price is nosediving faster than a Jeep with no brakes. 

The automaker, which pumps out brands like Jeep and Dodge, is dealing with bloated inventory, slumping demand, and some brutal competition from China. And when you’ve got too many cars and not enough buyers, bad things happen—like massive discounts and price cuts that eat into high-margin vehicles like pickup trucks (who also just so happen to service high-cholesterol cowboys who collect ‘dem trucks like beanie babies).  

(Source: New York Times) 

So, with that, Tavares is reportedly going to pitch his shakeup proposal at an upcoming board meeting in the U.S. this week (aka THE meeting that the board will be discussing his future during… LOL). So, no pressure for a guy who may not be around long enough to see his proposal be enforced, amirite? 

(Source: Giphy) 

What’s even more interesting, is that even though Tavares’ contract is set to expire in 2026, that hasn’t stopped Stellantis from quietly shopping around for his successor. Now Stellantis, of course, has declined to comment on any of this, probably hoping that if they stay quiet long enough, the problem will magically disappear. Spoiler alert: it won’t.

But for now we can only assume three things: Will they give him the boot early? Extend his contract? Or maybe just let him ride out the storm and see if he can pull off a miracle?

(Source: Giphy) 

My take? Well given that Stellantis’ American operations are basically a dumpster fire right now, I’m leaning towards the first option. You see, once upon a time, the company’s high-margin Jeeps and Ram trucks were cash cows. But now? They’re practically giving them away to clear out inventory. And when you’re cutting prices on your most profitable products, it’s not exactly a recipe for success. Hence the profit warning and slashed forecasts for 2024.

(Source: Motor 1 Company) 

Tavares has been trying to regain control after this series of unfortunate events, but the question remains—will the board back his big shakeup, or will they send him packing? It’s a tough call. The board, led by John Elkann, has been increasingly unhappy with the state of North American operations. And if you can’t keep your biggest market happy, well… things don’t tend to end well.

(Source: Giphy) 

Oh, and if you thought Tavares only had to deal with angry Americans, think again. His European dealers are also coming for him. They’ve blasted his refusal to support weaker emissions targets, arguing that falling EV sales make the 2025 targets impossible to hit. Meanwhile, Tavares is sticking to his guns, basically telling everyone that the rules have been in place for years, and now isn’t the time to start whining about them.

But, but, but… as expected, the dealers aren’t buying it. In fact, they’re claiming that they’re watching customers walk away from electric vehicles because of high prices and poor charging infrastructure - while also worrying about the massive fines coming down the pipeline if these emissions targets aren’t met. 

(Source: Car Scoop) 

So, in the end, what’s next for the struggling auto-maker? Well, depending on if Tavares’ proposal works and he doesn’t get cut, he plans to head off to Italy where he’ll be speaking to parliament about the decline in auto production. So really, this is just a waiting game to see what kind of carnage takes place at the meeting. 

For now though, keep an eye on Stellantis’ stock, which surprisingly is up 1.63% on the day, but down a blistering -41.93% YTD - and as always stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.