Paris, France

Stellantis CEO Carlos Tavares is poised for a key week at the Paris Auto Show as he tries to address a raft of new problems after announcing a significant profit warning that jolted investors. The world's fourth-largest automaker has announced a grim outlook and caused its stock to plummet nearly 45 per cent year-to-date. Questions are also being asked over how Tavares will go out in 2026, as this downturn has come less than halfway through his retirement.

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But Tavares's confidence dwindled after a series of management changes to stabilise share prices could not soothe the issues, initially passed off as a 'small operational error.' Tavares was once feted as a towering leader to admire his achievement in bringing Peugeot’s parent company PSA together with Fiat Chrysler, yet now finds himself under the lens for his five planned speaking dates — the equivalent of the work of Renault’s CEO Luca de Meo and more than industry luminaries such as BMW top executives. Volkswagen’s chief, Oliver Blume, declined to appear at the event, and Timo Dohr’s absence has similarly been noted.

The US market proved to be a hard sell, as Stellantis raised prices too steeply and was slow in the market response margin, helping to create a backlog of vehicles not sold. Cox Automotive's Erin Keating, however, said 'they didn't try hard enough ... to be strong on pricing' and that inventory issues were too great.

In addition, dealers add they are frustrated by Stellantis' strategy, which included removing entry level models and failing to invest in popular ones. Ford, being one of the competitors, has capitalised upon these missteps more in SUV segment than Jeep which in turn has pushed Jeep’s market share to the bottom. In a letter addressed to Tavares, Kevin Farrish, president of Stellantis' national dealer council, criticised Tavares, saying focus on short term profits have hurt key brands.

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Yet in weak demand and stepped up competition, Tavares has tough decisions to make as Stellantis seeks to boost output by selling more of its brightly coloured cars with electric motors. He must also deal with the possibility of potential tensions with the United Auto Workers union that has threatened strikes over stalled investments and what the future of Stellantis' four different US brands will be. The company would like the next 18 months to refresh its fortunes in the North American market.