Why Are Modern Car CEOs So Different From Their Predecessors?
If you’ve been following the auto industry lately, you might have noticed something curious: the people running today’s car companies aren’t always the classic “car guys” or finance wizards of old. Instead, we’re seeing a new breed of CEOs—leaders who are less about being the smartest engineer in the room and more about building teams, steering strategy, and navigating a wild, ever-changing landscape.
Let’s dig into what’s really going on at the top of the world’s biggest car firms, and why the role of CEO is evolving so quickly.
What’s Behind the Rapid Turnover of Automotive CEOs?
It’s no secret that car companies are swapping out their top bosses at a dizzying pace. According to data shared at the Financial Times’ Future of the Car summit, the average tenure for a CEO at a major company is just over four years. But in the automotive world, that churn rate is even higher—20% as of May, with about one in ten CEO seats either vacant or filled on an interim basis.
Why the revolving door? The answer is complexity. Today’s automotive CEOs are facing a perfect storm: electrification, digital transformation, supply chain headaches, global competition, and shifting regulations. It’s a lot for any one person to handle, and the pressure to deliver results, fast, is relentless. The outcome? More frequent leadership changes as companies search for the right fit for these turbulent times.
How Has the CEO Role Shifted in the Modern Car Industry?
For over a century, car company CEOs usually came from one of two backgrounds: they were either brilliant engineers or sharp financial minds. Think of legends like Ferdinand Piëch at Volkswagen—leaders who knew every bolt and balance sheet inside out.
But that’s no longer enough. As Chris Donkin from executive search firm Savannah put it, today’s CEO can’t possibly be the smartest person in the room on every issue. The sheer breadth of challenges—software, sustainability, geopolitics, and more—means that expertise has to be spread across a team.
Now, the CEO’s job is more like that of an executive chairperson. Their main task? Assemble a world-class team, empower them to tackle their domains, and keep the whole ship moving in the right direction. Strategic dexterity—being able to pivot, adapt, and innovate—is the name of the game.
What Does This Look Like in Practice? The Renault Example
Take François Provost, the new CEO of Renault Group. Just hours after stepping into the role, he faced the media following the release of Renault’s latest financial results. His message was clear: he’s here to deliver consistency and accelerate the progress started by his predecessor, Luca de Meo.
But Provost isn’t looking to be a celebrity CEO. He’s focused on strategy, not the spotlight. When asked about following in de Meo’s footsteps, he sidestepped the comparison, emphasizing the need for a steady hand in a turbulent market. Renault’s board chair, Jean-Dominique Senard, chimed in to highlight the value of “diversity and variety” in leadership styles—a nod to the fact that there’s no one-size-fits-all approach anymore.
This shift is playing out across the industry. Companies are less interested in finding a single genius and more focused on leaders who can build strong, adaptable teams and guide them through uncertainty.
Why Does Leadership Style Matter So Much Right Now?
The auto industry is in the midst of a once-in-a-generation transformation. Electric vehicles, autonomous tech, and digital services are rewriting the rules. At the same time, global supply chains are under strain, and consumer expectations are changing fast.
In this environment, leadership style isn’t just a matter of personal preference—it’s a strategic asset. CEOs who can foster collaboration, encourage innovation, and respond quickly to new challenges are far more valuable than those who try to micromanage every detail.
A recent McKinsey report found that companies with agile, team-oriented leadership are better positioned to outperform their peers, especially in industries facing disruption. It’s not about knowing everything; it’s about knowing how to get the best out of everyone.
What Should We Expect From the Next Generation of Car CEOs?
Looking ahead, don’t be surprised if the next wave of automotive CEOs come from even more diverse backgrounds—think tech, sustainability, or even consumer goods. The key skills will be adaptability, emotional intelligence, and the ability to unite people around a shared vision.
We’re also likely to see more women and leaders from underrepresented groups stepping into these roles, as companies recognize the value of different perspectives in driving innovation.
The Big Takeaway: It’s All About Strategic Leadership
The days of the all-knowing, all-controlling car CEO are fading fast. Today’s leaders are team builders, strategists, and change agents. They don’t need to have every answer—they just need to know how to find them, fast.
For anyone watching the auto industry, this is both a challenge and an opportunity. The companies that get leadership right will be the ones that thrive in the years ahead. And for the rest of us? It’s a fascinating story to watch unfold.