In the USA, the Opel and Chrysler parent company Stellantis wants to send its CEO Carlos Tavares into retirement when his contract expires at the beginning of 2026. The company confirmed this on Thursday. Stellantis is currently extensively restructuring its management in order to turn around its declining North American business. The company said they are already looking for a successor for Tavares.
The head of the world’s fourth-largest automobile manufacturer (in terms of sales) has faced harsh criticism in recent months from the United Auto Workers (UAW) union, car dealers and shareholders. Tavares has now decided to undertake a management restructuring, including his departure into retirement, to address these concerns, he said in a statement.
The Franco-Italian automaker also named Doug Ostermann, the former chief operating officer of its China division, as its new chief financial officer. He replaces Natalie Knight, who will be leaving the company. In addition to his role as head of the Jeep brand, Antonio Filosa has been named chief operating officer for North America, succeeding Carlos Zarlenga, whose future role has not yet been announced.
In addition to the management changes, Stellantis is also overhauling its structure. The organization of the supply chain is shifted to the production department to pay more attention to improving the performance of its suppliers. The automaker’s earnings and sales have been declining, forcing the company last week to cut its profit forecast for 2024 and announce possible dividend cuts and share buybacks next year.
Analysts have downgraded shares of Stellantis, which have fallen 42 percent this year after missteps in North America, where sales of popular products like Jeep and Ram trucks typically generate a majority of profits.