- Stellantis CEO Carlos Tavares to retire in 2026
- Stellantis already looking out Tavares’ successor
- Stellantis initiates management change to show round poor efficiency in North America
Stellantis on Thursday confirmed that CEO Carlos Tavares will retire in early 2026 when his present contract expires.
The corporate in September stated it was already looking for a successor for Tavares, although it stated on the time that renewing Tavares’ contract was nonetheless on the desk.
The announcement of Tavares’ deliberate exit from Stellantis follows a gathering of the board of administrators this week, the place a number of adjustments to the corporate’s management had been made. The adjustments come as Stellantis struggles to show round steep losses in North America.
Key among the many management adjustments is the alternative of Chief Monetary Officer Natalie Knight by Doug Ostermann, and the alternative of North America Chief Working Officer Carlos Zarlenga by Antonio Filosa. Knight is leaving the corporate whereas Zarlenga will probably be moved to a different place, Stellantis stated. Filosa is presently head of Jeep and can maintain that place whereas additionally heading the North American division.
Stellantis manufacturers
Tavares has served as Stellantis’ CEO because the firm was fashioned in 2021 from the merger of Fiat Chrysler Cars and France’s PSA Group. He managed to make some effectivity enhancements throughout the corporate’s 14 manufacturers shortly after the merger, however got here below fireplace this yr after Stellantis in July reported a decline of 48% in internet earnings year-over-year.
The poor efficiency has led Stellantis to chop its revenue forecast for 2024 and sign doable reductions to its beneficiant dividend and share buyback packages, Reuters reported on Oct. 3.
The decline is generally on account of falling gross sales within the U.S., the place sellers are additionally angered by among the methods Tavares has been executing. Lots of their grievances had been listed in an open letter to Tavares issued in August by the Stellantis Nationwide Supplier Council. The letter included complaints about “reckless short-term decision-making” to safe report earnings in 2023, plus the “fast degradation” of Stellantis’ U.S. manufacturers, which embrace Chrysler, Dodge, Jeep, and Ram.
Stellantis in September responded to the letter, stating that it has developed a plan with the seller physique to assist increase gross sales and scale back inventories. Stellantis has additionally initiated some value reducing measures, and Tavares in July warned that some manufacturers may very well be dropped in the event that they proceed to underperform.
