Stellantis CEO Carlos Tavares to Retire in 2026 Amid Struggles in North America

Stellantis, the parent company of Chrysler, has announced that CEO Carlos Tavares will retire at the conclusion of his contract in early 2026, marking a significant leadership change as the automaker grapples with declining performance in its North American operations. This announcement comes alongside a series of senior management shifts aimed at revitalizing the company’s fortunes in a region that has historically been a profit driver.

Under Tavares’ leadership, Stellantis has faced growing challenges, particularly in the North American market, where sales of its popular Jeep and Ram truck models have faltered. Last week, the automaker lowered its 2024 profit forecast, signaling potential cuts to dividends and share buybacks in response to declining earnings and sales. Analysts have reacted by downgrading Stellantis’ stock, which has plummeted 42% this year, following missteps that have eroded investor confidence.

As part of the leadership restructuring, Stellantis appointed Doug Ostermann, previously the chief operating officer of the company’s China division, as its new finance chief, replacing Natalie Knight. Additionally, Antonio Filosa has been appointed as the chief operating officer for North America while retaining his position as CEO of the Jeep brand, succeeding Carlos Zarlenga, whose future role remains unspecified.

Tavares, known for his passion for racing and celebrated for previously steering Stellantis to profitability, has faced increasing scrutiny as the company’s inventory levels and profits have declined sharply. Following years of enviable margins compared to competitors, the recent downturn has left industry observers shocked.

Analysts from Bernstein noted that Stellantis’ credibility suffered significantly after the company dismissed concerns over inventory levels and discounting strategies in the U.S. for much of the past year. The management reshuffle, which adds to 21 changes at the senior level in the past year, may not be sufficient to restore investor confidence, they suggested.

Stellantis recently revised its financial outlook, shifting from a forecast of positive cash flow to a projected negative cash flow of between €5 billion and €10 billion ($5.5 billion to $10.9 billion) for this year. While Tavares had previously emphasized the value of Stellantis’ 14 brands—including Maserati, Fiat, Peugeot, and Jeep—he indicated in July that underperforming brands could be cut to streamline operations.

Facing criticism from various stakeholders, including the United Auto Workers union and shareholders, Tavares remarked that the management changes are necessary to navigate the current “Darwinian” landscape of the automotive industry. He emphasized the company’s duty to adapt and prepare for the future.

In addition to these leadership changes, Stellantis is restructuring its supply chain organization, integrating it within the manufacturing division to enhance supplier performance and drive overall improvement in operations. As the company prepares for the next chapter, the focus will remain on revitalizing its North American presence while addressing the pressing challenges ahead.

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