Stellantis CEO Carlos Tavares to retire in 2026 as automaker struggles in North America
By Nora Eckert
DETROIT (Reuters) -Chrysler parent Stellantis confirmed on Thursday that CEO Carlos Tavares would retire at the end of his contract in early 2026 and the search for his successor was under way, as it struggles to turn around its lagging North American operations.
Earnings and sales in the French-Italian automaker’s traditional profit powerhouse have been declining, forcing it to last week cut its 2024 profit forecast, and signal possible reductions to its dividend and share buybacks next year.
Analysts have downgraded the company’s stock, which has tumbled 42% this year after missteps in North America, where sales of popular products such as its Jeep and Ram trucks typically produce much of its profits.
The confirmation of Tavares’ retirement plans comes weeks after Stellantis said it was searching for his successor, though at the time it said it was possible he could remain after his contract expires.
The head of the world’s fourth-biggest automaker by sales has faced harsh criticism from the United Auto Workers union, auto dealers and shareholders in recent months.
Tavares opted for a broad management shakeup to address these concerns, he said in a statement Thursday.
“During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare ourselves for the future,” Tavares said.
Stellantis appointed Doug Ostermann, the former chief operating officer of its China division, as its finance chief, replacing Natalie Knight who is leaving the company. The automaker is also dealing with an inventory surplus amid tough competition from China.
The automaker also appointed Antonio Filosa as its North America chief operating officer in addition to his role as Jeep brand CEO, succeeding Carlos Zarlenga, whose future role has not been announced.
In addition to the management changes, Stellantis is also shaking up its structure by moving the supply chain organization to the manufacturing division in an effort to provide more attention to improving performance among its suppliers.
(Reporting by Nora Eckert in Detroit; Additional Reporting by Shivansh Tiwary in Bengaluru; Editing by Alan Barona and Jamie Freed)
