Stellantis NV (STLA) CEO Carlos Tavares could be planning a major management overhaul, according to an exclusive Bloomberg report. Tavares is expected to present his restructuring proposal at the automaker’s board of directors meeting in the U.S. this week. The proposed cuts could affect a wide range of departments, including finance teams, regional heads, and brand executives, according to the report.
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STLA’s Board of Directors Could Also Discuss Tavares’ Future
In addition to discussing the reshuffle, board members are likely to assess Tavares’ future as CEO. This board meeting comes after a Bloomberg report last month suggested that the board’s Chairman, John Elkann, had begun searching for a potential successor to Tavares. It is important to note that Tavares’ contract is set to expire in early 2026.
Additionally, the company’s Board is expected to focus on the company’s turnaround efforts in the United States.
Stellantis Is Struggling Big Time in the U.S.
The news of a likely management shakeup comes as the company faces significant struggles in the U.S. The automaker, which owns brands like Jeep and Dodge, has been struggling with high inventories, declining sales in the U.S., and key leadership departures The company slashed its FY24 forecast and warned of higher-than-expected cash burn.
It was reported that Elkann, who also serves as CEO of Exor NV, which is Stellantis’ largest shareholder, has grown increasingly dissatisfied with the company’s performance in North America.
Is STLA a Good Stock to Buy?
Analysts remain cautiously optimistic about STLA stock, with a Moderate Buy consensus rating based on nine Buys, seven Holds, and two Sells. Over the past year, STLA shares have declined by more than 25%, and the average STLA price target of $22.19 implies an upside potential of 66.6% from current levels.
