Stellantis Eyes Dividend in 2025

MILAN (Reuters) – Stellantis is optimistic about its performance improvements, which may enable dividend payments in 2025, according to finance chief Doug Ostermann. This follows the resignation of former CEO Carlos Tavares.

In his first public comments since Tavares's abrupt exit on Sunday, Ostermann emphasized Stellantis's potential to generate cash and perform strongly in the coming year. "I feel strongly that we will have a dividend. We'll also have discussions around buybacks," he stated at a Goldman Sachs conference.

He noted that due to the current stock price, buybacks appear attractive but will be determined once this year's final numbers are available. The profit warning issued in September was primarily attributed to excessive U.S. inventories and declining market shares in both the U.S. and Europe; however, Ostermann expressed confidence in overcoming these challenges.

"That should give us a lot of confidence to be able to launch into 2025 in a much more healthy way," he said. Ostermann replaced Natalie Knight as CFO in October, part of a management reshuffle following the profit warning.

He mentioned that disagreements between Tavares and Stellantis' board contributed to the CEO's resignation, which revolved around tactical issues and the balance between short-term metrics and long-term company benefits. There were also concerns regarding Stellantis' relationships with dealers, suppliers, unions, and governments. "Clearly we need to build back trust," Ostermann remarked.

Nonetheless, he confirmed that Stellantis would maintain its long-term strategies, including the development of multi-energy platforms to accommodate various propulsion systems. Ostermann, who previously led operations in China, is regarded as a potential successor to Tavares.

An American by nationality, Ostermann has held several roles in Stellantis and formerly at Fiat Chrysler, where he began as group treasurer in 2016. He has been instrumental in forming Stellantis' current partnership with Chinese automaker Leapmotor.