The new CEO has brought in a significant number of former colleagues from Sterling despite their lack of automotive industry experience. This appears to be part of a deliberate effort to install a trusted inner circle. Whether this strategy will ultimately prove effective remains uncertain.
There is a strong emphasis on achieving a near-term exit, as the leadership team’s financial incentives are closely tied to that outcome. Internally, the organization is highly disorganized, with decision-making concentrated at the top and limited pushback from newly appointed leaders. Individuals who did not align with this approach have largely been removed.
At the same time, the company is investing heavily in transformation hires without a clear funding path, leading to workforce reductions to offset these costs. This has contributed to ongoing instability.
There is hope that J.D. Power will eventually transition to a more stable and sustainable structure. However, its trajectory under private equity ownership has been underwhelming—an outcome that is not uncommon in similar situations. It is widely anticipated that the company may ultimately be sold, potentially mirroring the path of Sterling.
