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One in five automotive chief executives have resigned over the past 12 months as the industry tackles a lack of leaders to navigate geopolitical turbulence and increasing competition.
According to Executive Search Farm’s Savannah, the CEO change has resulted in a change with Chiefs in 11 roles of the top 50 auto companies in Stellantis, Volvo Cars, Lucid and Nissan.
Globally, the average annual churn rate for CEOs of all sectors’ listed companies is one in nine times over the past five years.
Automotive executives say the blurred line between the automotive and the technology industry has complicated plans for successors as the sector moves to electric vehicles. The pressure brought on by President Donald Trump’s trade war, declining profitability and the influx of cheap products from Chinese brands have also been added to the complex background.
“Looking at the leadership turnover rate across the global automotive industry, we now have ideas about the level of volatility and disruption and disruption across the sector,” said Chris Donkin, managing partner at Savannah.
According to Headhunter Russell Reynolds, 10 CEOs left automakers and auto parts suppliers last year compared to four in 2023 and three in 2022.
The challenge of identifying successors is particularly pronounced in Stellantis after Carlos Tavares left in December as sales fell in the US and Europe.
The committee, led by chairman John Elkan, was leaning in March on finding outside candidates, ranging from five narrowed-down candidates, including five insiders, two outsiders and one non-suicide.
Those who spoke with the board include Mike Manley, former Jeep boss and self-related chief executive of the auto retailer. Manly did not respond to requests for comment.
However, in recent weeks, the focus has returned to two internal candidates. It is Antonio Firosa, the group’s North American head, and Maxim Picutt, Chief Purchaser.
One closest to the discussion said tariff uncertainty and geopolitical tensions have reinforced the need to find people who know the company thoroughly.
Running a group that includes 14 brands, including Peugeot, Fiat and Jeep, as well as core operations in France, Italy, Germany and the US also requires sophisticated diplomatic skills, another with knowledge of deliberations.
“No candidates check every box. I feel they’re heading towards internal candidates. They’re probably familiar with the business and industry,” said one person close to Stellantis.
Stellantis said it was on track to announce the new chief by June, but declined to comment further.
Beyond Stellantis, Volvo Cars took home the 74-year-old former boss Håkan Samuelsson in late March, piloting a Geely-owned Swedish carmaker for several years through tariff uncertainty.
Lucid is looking for a new CEO after Peter Rollinson resigned in February after the losses of the US EV maker. Nissan overhauled its leadership team in April and carried out a dramatic restructuring to curb the financial crisis.
While some executives acknowledge that the changing industry situation requires skill sets that go beyond the automotive sector, it is also difficult to embrace external talent.
Aston Martin Chief Human Resources Officer Simon Smith said in the future of the Automotive Summit FT earlier this month, “I think there is a lack of talent across the industry in many key areas of skill and leadership.” “But it’s not always easy for our managers to think about people outside of cars. It’s a very isolated industry.”
Last year, Aston Martin appointed former Bentley CEO Adrian Hallmark as the new boss.
“The (automobile industry) needs a whole new perspective, a fresh eye, and a completely different perspective,” says Lynn Calder, CEO of off-road maker INEOS Automotive.
