Chrysler parent company Stellantis announced major senior management changes as CEO Carlos Tavares is set to retire at the end of his contract in early 2026. The French-Italian automaker has been experiencing declining earnings and sales, prompting a cut in its 2024 profit forecast and possible reductions to dividends and share buybacks. These financial struggles have led to a 42% decrease in the company’s stock value this year, particularly due to missteps in North America, where popular products like Jeep and Ram trucks generate most profits.
Despite previously considering Tavares’ possible continuation after his contract expires, Stellantis will now name his successor by the fourth quarter of 2025. Doug Ostermann has been appointed as the new finance chief, replacing Natalie Knight, who is leaving the company. Antonio Filosa will take on the role of North America chief operating officer in addition to being the CEO of Jeep, replacing Carlos Zarlenga, whose future role with the company remains uncertain.
Tavares, who led the company since its creation through a merger in 2021, has been praised for making Stellantis profitable in the past. However, the company’s recent struggles with bloated inventories and declining profits have led to significant changes in senior management within the organization. Investors have lost trust in the company after a recent guidance cut and a series of senior management changes that have failed to reassure stakeholders.
Stellantis is now facing negative cash flow projections for the year and is considering axing underperforming brands to cut costs. Tavares has been criticized by various stakeholders, including the United Auto Workers union, auto dealers, and shareholders. The management shakeup is aimed at addressing these concerns and preparing the company for an uncertain future in the automotive industry.
In response to the challenges faced by Stellantis, the company is reorganizing its structure by moving the supply chain organization to the manufacturing division to improve supplier performance. The company recognizes the need to adapt and evolve during this challenging period in the automotive industry, with Tavares emphasizing the company’s ethical responsibility to prepare for the future. Despite the current struggles, Stellantis is working towards regaining trust and improving its financial performance in the coming years.
