Stellantis shares the opposite as automaker unveils a change in leadership

Car manufacturer Stellantis has started the search for a successor to CEO Carlos Tavares, who will step down in 2026.

Portuguese-born Tavares became the company’s boss in January 2021 after forming it from the merger of Fiat Chrysler Automobiles with Peugeot and Citroen owner PSA Group, where he was also CEO.

His tenure at Stellantis began at the height of the Covid-19 pandemic, when global car sales plummeted due to strict lockdown restrictions and automakers cut production amid a semiconductor shortage.

Although car sales have since recovered, Stellantis has faced lower-than-expected demand and increased competition from Chinese automakers this year.

In its first-half results, the company’s net sales fell 14 percent to €85 billion, while net profit almost halved to €5.6 billion.

As a result, the Netherlands-based company’s shares have fallen in value by about 44 percent this year.

Stellantis also lowered its annual profit forecast in late September – it now expects an adjusted operating profit margin of 5.5 to 7 percent for fiscal 2024, compared to a double-digit rate previously estimated.

The group, Europe’s second-largest carmaker, also warned that cash flow would be €5 billion to €10 billion negative instead of positive.

On the same day, it announced the recall of 94,000 plug-in hybrid electric Jeep SUVs in the United States due to fire safety risks.

Tavares will step down as CEO of Stellantis when his five-year term expires in early 2026.

Stellantis expects to announce his successor in the fourth quarter of next year, following a formal process led by Chairman John Elkann.

In addition, the company unveiled a broader management shake-up on Thursday, with Doug Ostermann, the former chief operating officer of its China division, replacing Natalie Knight as finance boss.

Meanwhile, Antonio Filosa will hold the group’s COO position in North America, in addition to his role as CEO of the Jeep brand, succeeding Carlos Zarlenga.

Stellantis CEO Carlos Tavares said: “During this Darwinian period for the automotive industry, it is our duty and ethical responsibility to adapt and prepare for the future better and faster than our competitors.”

He added: “The newly appointed leadership team members will make their valuable contributions to our team’s resolve to tackle the challenges ahead.”

Stellantis is the world’s fourth-largest automaker, after Toyota, Volkswagen and Hyundai Motor Group, with about 6.4 million vehicles sold last year.

In addition to Peugeot and Citroen, there are many other brands such as Alfa Romeo, Dodge, Lancia, Maserati and Vauxhall.