Stellantis confirmed on Thursday that its chief executive, Carlos Tavares, will retire at the end of his contract in 2026, and that the search for a successor is ongoing as it faces difficulties in reversing the weak performance of its operations in North America.
The French-Italian automaker’s profits and sales have been falling, forcing the company last week to cut its 2024 profit forecast and flag possible reductions in its dividend and share buybacks next year.
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Analysts have been downgrading the company’s shares, which are already down 42% this year, after some missteps in North America, where sales of popular models such as Jeep and Ram pickup trucks tend to generate a significant portion of their profits.
The confirmation of Tavares’ retirement plans comes weeks after the Stellantis say it was looking for its successoralthough he said at the time that there was a possibility that he would remain in the role after his contract ended.
The CEO of the world’s fourth-largest automaker by sales has faced harsh criticism from dealers, shareholders and the United Auto Workers union in recent months.
Tavares said he opted for a broad management overhaul to deal with these concerns, according to a statement released this Thursday.
“During this ‘Darwinian’ period for the automotive industry, our duty and ethical responsibility is to adapt and prepare for the future,” said Tavares.
Stellantis has named Doug Ostermann, the former chief operating officer of its China division, as chief financial officer, replacing Natalie Knight, who is leaving the company. The automaker is also dealing with a surplus of inventory amid stiff competition from China.
(Reporting by Nora Eckert in Detroit; Additional reporting by Shivansh Tiwary in Bengaluru)
