• The mood inside Stellantis has shifted dramatically after its CEO resigned on December 1.
• Dealers and employees are encouraged by early moves made by the interim executive committee.
• The automaker's critical relationship with US dealers is on the mend.

The mood inside Stellantis's North American division has changed dramatically since former CEO Carlos Tavares unexpectedly stepped down on December 1.

Dealers and employees of the struggling Jeep owner who spoke with Business Insider say they and many of their peers feel optimistic about how the company has handled these first two weeks.

They point to quick and sweeping changes made by Chairman John Elkann and his advisory committee, who have vowed to rebuild trust with key stakeholders.

So far, this interim executive committee has re-hired a longtime Dodge and Ram executive and reinstated a US sales chief who was shifted into a different role earlier this year, moves that disgruntled dealers immediately celebrated.

Elkann's executive committee, comprised of current and former executives, has taken over the company's leadership while searching for a new CEO, which they hope to hire in the first half of 2025.

The shift in morale happened almost overnight, sources said. Elkann delivered a rousing speech to employees at Stellantis's North American headquarters the day after Tavares stepped down, and change was swift in the days that followed.

During the employee town hall, Elkann emphatically announced the end of Tavares's "Project Darwin," a ruthless cost-cutting initiative that included several waves of buyouts and layoffs, and even, at one point, sending employees tips on how to find a new job outside the company.

Elkann instead reassured employees that Stellantis "will survive," a person who attended the meeting told BI.

Executive shuffles

Longtime Dodge and Ram executive Tim Kuniskis, who retired earlier this year, returned to the company on Monday. He is stepping back into his role as leader of the Ram brand, which builds Stellantis's highly profitable pickup trucks.

Meanwhile, a shuffle in the North American executive team saw Jeff Kommor reinstated as US sales chief, a move lauded by dealers who were frustrated to see him shifted into a commercial sales role earlier this year.

"The changes will enable us to operate in a structure that will drive the best outcomes for the region, unlock significant potential, and win in the market," a Stellantis spokesperson said in a statement. "A critical lever to accomplish that is a dedicated CEO for the Ram brand who is singularly focused on that brand."

According to people briefed on these decisions, Antonio Filosa, CEO of the Jeep brand and newly named Chief Operating Officer, was a key driver of these moves.

By the end of the second week without Tavares, Stellantis shares had risen about 12% in his absence. This is a sign that investors also feel more encouraged by leadership's new direction, including efforts to reign in oversupply and boost sales.

Dealers get back on board

Tavares lost the crucial support of Stellantis's US dealer body earlier this year, and it appears that the company is prioritizing that relationship in the early days of the post-Tavares reorganization.

Kevin Farrish, a Chrysler-Dodge-Jeep-Ram dealer in Virginia who serves as dealer body president, said the group is looking forward to working with the new "powerhouse team" Elkann's executive committee has built. He specifically mentioned Kuniskis and Kommor, as well as Filosa in his new operating officer role and Matt Thompson, who remains as senior vice president of US retail sales.

"That will truly bring us back to our former glory," Farrish told Business Insider. "We needed change, so provided the changes are correct — and they are thus far — it shows their commitment to fix things."

• Stellantis is facing more upheaval after CEO Carlos Tavares resigned on Sunday.
• The Jeep and Chrysler owner is battling sliding sales and fierce competition from Chinese rivals.
• Analysts say Stellantis' problems are unlikely to be solved anytime soon.

The owner of Jeep and Chrysler is facing further upheaval after its CEO departed on Sunday.

Shares in Stellantis fell by almost 9% in Milan on Monday after Carlos Tavares, who had been due to step down in 2026, announced he would leave immediately. The stock has now fallen 45% this year, valuing the company at about $36 billion — $8 billion less than Ford.

Tavares has had a bumpy ride at the head of the company that owns brands such as Jeep, Chrysler, and RAM as well as European carmakers Fiat and Peugeot — and analysts warned his exit was unlikely to solve any of Stellantis' many problems.

"Although not a surprise, the early and immediate departure of CEO Carlos Tavares leaves the group without leadership at a time of critical decisions on brand management to reverse market share loss and excess industrial capacity in Europe and North America," wrote Jeffries analysts in a note on Monday.

Here are some of the many speed bumps facing whoever succeeds Tavares in one of the auto industry's toughest jobs:

1. US model range

Stellantis' US sales have plummeted in recent months, and dealers previously told Business Insider that a lack of affordable models was affecting sales of Jeep and Ram vehicles.

Tavares trimmed product lineups at Stellantis' US brands during his time as CEO, but the decision to discontinue so many models appears to have left the company out of step with consumer demand.

Jeep, Chrysler, and Ram all have an oversupply problem, with the three brands having more than 100 days of supply at the end of summer compared to the industry average of 77, according to Cox automotive data.

2. Union battles

Stellantis is facing an ongoing battle with the powerful United Auto Workers (UAW).

The union has threatened to walk out over a scaling-back of product commitments it says breaches the 2023 contract struck with management after a historic strike.

Stellantis has filed its own legal action against the UAW, accusing it of violating that contract with votes to authorize strikes.

The union welcomed Tavares' resignation, with president Shawn Fain criticizing the Portuguese executive's "reckless mismanagement" of the company in comments to The Detroit Free Press.

3. Competition from China

Like its rivals, Stellantis is under pressure from a wave of affordable Chinese EVs.

Speaking at an event on the sidelines of the Paris auto show in October, Tavares said the likes of BYD could produce EVs for about a third of the cost of their European rivals, and described competing with them as a "matter of survival."

Stellantis has partnered with China's Leapmotor to sell EVs outside China, but the company will still face stiff competition from Chinese upstarts eyeing expansion in Europe.

4. Stuttering EV sales in Europe

Stellantis sales are in free fall on both sides of the Atlantic, with Europe down 17% in the third quarter compared with last year.

It's been hit by slowing EV sales in Europe, with a lack of affordable models and the end of subsidy programs in markets such as Germany affecting demand.

Stellantis is suspending production at a factory in Italy as a result, and the company also announced it would shut down a factory in the UK amid concern over EV sales targets in Britain.

5. Trump tariffs

Trump's election victory poses peril for automakers in the US and abroad, and Stellantis is no exception.

The president-elect has floated tariffs on European companies that could affect Stellantis' European brands.

Trump has also said he will impose blanket 25% tariffs on all goods imported from Mexico and Canada.

Such charges could have a huge impact on Stellantis, which has about a third of its full-size pickup truck production in Mexico, according to Morningstar analyst David Whiston.

Stellantis did not immediately respond to a request for comment from Business Insider.