This is not an opportune time to be the head of a global automotive company. At least, that is what recent events suggest, according to AutoNews. Porsche, Nissan, Stellantis, Volvo, Renault, Jaguar Land Rover, and Hyundai have all decided to restructure their leadership. Toyota and BMW are expected to follow suit later this year.

Many of the world's largest automotive brands are simultaneously hitting the reset button, which speaks volumes about the industry's state. Pressure from new Chinese rivals, the inevitable electric vehicle (EV) future, and buyer hesitation are just some of the challenges these traditional automakers seem unable to resolve.

For many decades, global automakers relied on their immense scale, engineering depth, and established supply chains. These strengths are now creating drag. Electric vehicles require fewer components, while software upgrades and artificial intelligence (AI) have become critical parts of safety and driver assistance.

Michael Leiters, 54, was appointed CEO of Porsche effective 1/1/2026. Photo: Porsche

Concurrently, Chinese automakers are launching affordable, high-tech electric vehicles, and Silicon Valley continues to move closer to autonomous driving technology.

Analysts suggest boards are scrutinizing CEOs more than ever, as one miscalculation could result in billions of USD in damages.

Toyota's leadership change is a prime example. Koji Sato served as CEO for only three years before handing over responsibilities to Chief Financial Officer Kenta Kon. Even with Toyota achieving record sales and profits, the company recognized the need for adjustment. Sato himself acknowledged that the current pace of industry development renders old benchmarks obsolete.

Stellantis also underwent a change when Carlos Tavares resigned due to disagreements with the company's plans. Now, Antonio Filosa is leading the group, responsible for no fewer than 14 brands. Filosa must defend Stellantis in Europe against Chinese companies and ensure that the US business does not face further trouble. This was not the only change for Stellantis, as Chrysler and Alfa Romeo CEO, Chris Feuell, departed in early March, leaving Dodge CEO, Matt McAlea, in charge.

Automotive CEOs today do not simply run car manufacturing companies. They simultaneously manage technology companies, battery production, artificial intelligence laboratories, and robotics operations. Analysts predict that future growth will come not only from vehicle sales but also from mobility services, defense technology, automation, and software platforms.

Renault is producing drones. Hyundai is preparing its robotics business with a goal of manufacturing tens of thousands of units each year and even plans to introduce humanoid robots into its factory in Georgia.

However, the traditional business segment cannot be ignored. Gasoline and hybrid vehicles are still generating the cash flow automakers need to fund EV and software development. Companies that pushed too quickly into electrification have paid a price.

As Hyundai's CEO from early 2025, Jose Munoz became the first non-Korean to lead the automaker. Photo: Hyundai

General Motors, Ford, Honda, and Stellantis have collectively recorded tens of billions of USD in write-downs on underutilized EV factories and battery programs. This is the core dilemma for modern CEOs: investing heavily in the future without weakening the present.

Young leaders like Ivan Espinosa of Nissan reflect the shift towards tech-savvy executives. Analysts believe companies should look beyond the automotive world, into semiconductors and advanced manufacturing, for their next generation of CEOs.

Revitalizing a century-old automaker is a slow process, and even brilliant CEOs encounter structural limitations. Massive workforces, complex labor agreements, and global factory networks cannot change overnight. However, boards are making it clear that standing still is even riskier.

The new generation of CEOs inherits problems no previous generation has faced. They must balance the old and the new, anticipate technological leaps, respond to geopolitical tensions, and compete with both Chinese EV manufacturers and Silicon Valley's software talent.

My Anh