Stellantis CEO Carlos Tavares to Retire in 2026

By Nora Eckert

DETROIT (Reuters) – Chrysler parent Stellantis (NYSE:STLA) confirmed on Thursday that CEO Carlos Tavares would retire at the end of his contract in early 2026, announcing significant senior management changes as it works to revitalize its struggling North American operations.

Earnings and sales in the French-Italian automaker's traditional profit stronghold have declined, leading the company to cut its 2024 profit forecast last week and suggest possible reductions to dividends and share buybacks next year.

Due to missteps in North America and a tumble of 42% in stock value this year, analysts have downgraded the company's stock. Sales of popular products like Jeep and Ram trucks have significantly decreased, contributing to these losses.

The announcement of Tavares' retirement comes weeks after Stellantis stated it was searching for his successor, although there was mention he might remain after his contract ends. Stellantis, now the world's fourth-largest automaker by sales, aims to name a successor by the fourth quarter of 2025.

Doug Ostermann, the former chief operating officer of its China division, has been appointed as the new finance chief, replacing Natalie Knight, who is leaving the company.
Antonio Filosa is now the chief operating officer for North America, in addition to leading the Jeep brand, succeeding Carlos Zarlenga, whose future role remains unspecified.

Tavares, an enthusiastic race car driver previously recognized for making Stellantis highly profitable, has led the company since the merger of Fiat-Chrysler and Peugeot (OTC:PUGOY) maker PSA in 2021, where he had been board chair since 2014.

However, recent months have shown severe profit declines and bloated inventories, shocking industry observers. Bernstein analysts pointed out that investors lost trust after the company cut guidance in late September, dismissing investors' concerns over inventories for a year prior.

Today's management reshuffle adds to a troubling list of senior management changes (21 in the past year) which may not alleviate investors' worries, they noted.

Last week, Stellantis lowered its forecast from positive cash flow to a negative cash flow of between 5 billion and 10 billion euros ($5.5 billion-$10.9 billion) this year.

Tavares had previously maintained that the group's 14 brands, which include Maserati, Fiat, Peugeot, and Jeep, were valuable assets to Stellantis' portfolio. However, in July, he acknowledged that underperforming brands might be cut to save costs.

He faced mounting criticism from the United Auto Workers union, auto dealers, and shareholders in recent months. Tavares stated that the management overhaul was intended to address these concerns, emphasizing the need for adaptation during this challenging period for the automotive industry.

In addition to management changes, Stellantis is restructuring its organization by moving the supply chain division to manufacturing to enhance supplier performance.

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