Carmaker Stellantis has embarked on what industry executives expect to be a lengthy and deeply challenging effort to replace star chief executive Carlos Tavares after a sudden reversal in the fortunes of the company that builds the Peugeot, Fiat and Jeep brands.

Stellantis said on Monday it has begun a search for a candidate to succeed CEO Carlos Tavares, whose contract is set to expire in 2026.

Carlos Tavares has a contract to remain as Stellantis chief executive until early 2026 but that hasn’t stopped company chairman John Elkann from already starting a search for Tavares’ successor.

Pressure on Tavares is rising due to Stellantis' poor performance in markets including the U.S., its biggest single profit pool.

Stellantis has initiated a search for a successor to CEO Carlos Tavares, Bloomberg News reported on Monday citing people familiar with the matter. Tavares has been under pressure to correct the automaker's struggling North American operations,

CEO Tavares' tenure at Stellantis has been marred by poor profits and conflicts with the United Auto Workers union.

Stellantis is searching for CEO Carlos Tavares' successor, the company said Monday, after the Chrysler parent laid out a plan to strengthen North America operations by slashing bloated inventories and cutting vehicle prices.