The selection process for Stellantis chairman John Elkann involves interviewing potential CEOs while preparing analyses for the future direction of their 14-brand product lineup. Stellantis faces complex issues because it arose from the 2021 Fiat-Chrysler and PSA merger which resulted in a large but difficult-to-manage brand collection.

Advertisment

The incoming CEO will encounter significant pressure to simplify the portfolio through items like streamlining brand operations to create marketing and developmental and sales joint benefits. Each individual vehicle brand within the company including Jeep as well as Ram and Alfa Romeo and Lancia maintains dedicated consumer bases complicating any possible reductions.

Also Read | Stellantis reshuffles leadership amid ongoing CEO search

Stellantis proves that its European operations face difficulties from multiple brands. Peugeot as the top-selling brand for the company emerges as a leading product yet this brand controls only a small share of the regional market. Stellantis faces weak customer awareness in comparison to its competitors Volkswagen and Toyota.

Advertisment

CEO selection evaluations conducted by Elkann show that he seeks an individual who understands how to guide the brand portfolio. Under Carlos Tavares' leadership Stellantis supported the survival of all brands while recent market challenges have pushed the company to reassess its approach.

The critical search for a new CEO by Elkann arises from deteriorating U.S. market sales performance accompanied by declining profit margins. Stellantis encounters difficulties in Europe at the same time it pulls out of its Chinese joint venture operations showing retirement from that market.

New investors at the company require the CEO designate firm strategic decisions. According to Acomea SGR investor Fabio Caldato he would view current developments positively because the new CEO plans to review brand portfolios.

Advertisment

Research analysts indicate that Alfa Romeo, DS and Lancia premium brands show signs of vulnerability. The U.S. market awareness of Dodge and Chrysler brands makes them forecasted survivors despite their current product failure problems.

The firm continues to support all brands in their future development with fresh product plans even though the CEO search demands a comprehensive brand strategy evaluation. The company emphasizes its commitment to providing diverse choices to customers, leveraging the "deep history and strong identities" of its brands.