Stellantis CEO plans major management changes amid rising pressure, Bloomberg News reports

(Reuters) – Stellantis (NYSE:STLA) CEO Carlos Tavares is planning a deep management reshuffle amid the automaker’s profit warning, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Tavares has faced mounting pressure to rectify the automaker’s North America operations, where a steep fall in sales and profit have triggered a steep drop in the company’s share price.

The world’s fourth biggest automaker by sales is facing weakening global demand and an inventory surplus amid tough competition from China.

The carmaker’s current problems are more pronounced in the United States, where it has been forced to lower prices on some of its high-margin Jeeps and pickup trucks due to slowing demand.

Last week, Stellantis cut its 2024 profit forecast and warned it will burn more cash than expected as it promised to reduce output and offer big discounts to revive its business in the U.S.

Tavares may present his proposal at a board meeting scheduled to happen in the U.S. this week. The proposal could affect finance teams, regional heads and brand executives among others, the report said.

Stellantis did not immediately respond to a Reuters request for comment.

The board is also expected to discuss Tavares’ future during the two-day meeting, the report added.

Stellantis is currently seeking a successor to Tavares, whose contract is set to expire in 2026. However, the automaker has also hinted at the possibility of Tavares extending his tenure with the company.