Stellantis begins search for successor to CEO Carlos Tavares

(Reuters) – Stellantis (NYSE:) has initiated a search for a successor to CEO Carlos Tavares, Bloomberg News reported on Monday citing people familiar with the matter.

Tavares has been under pressure to correct the automaker’s struggling North American operations, with record falls in sales and profit that have sent the company’s share price tumbling.

The report said Stellantis Chairman John Elkann has begun searching for a successor to Tavares, whose contract expires in 2026.

Tavares, who is an avid race car driver, was named top boss in 2021 and has been a part of several automakers including Renault (EPA:), PSA and Nissan (OTC:).

Chrysler-parent Stellantis’ North American operations have been struggling and has attracted criticism from consumers and workers who have argued the company has not done enough to invigorate demand.

The automaker is seeking to strengthen its positioning in North America by slashing its bloated inventories and cutting vehicle prices, the group’s finance chief Natalie Knight said at a BofA Securities virtual conference earlier on Monday.