Table of Contents
- Stellantis was born from the merger of Fiat Chrysler and the PSA Group
- Tavares’ tenure at Stellantis began at the height of the Covid-19 pandemic
Automotive giant Stellantis has launched a search for a successor to CEO Carlos Tavares, who will step down in 2026.
Tavares, born in Portugal, became the head of the company in January 2021 after its creation from the merger of Fiat Chrysler Automobiles with the PSA group, owner of Peugeot and Citroën, where he was also general director.
His tenure at Stellantis began at the height of the Covid-19 pandemic, when global vehicle sales were plummeting due to tough lockdown restrictions and automakers scaled back production amid a semiconductor shortage.
Departure: Carlos Tavares (pictured) became head of Stellantis in January 2021 following its creation from the merger of Fiat Chrysler Automobiles with the PSA Group.
While auto sales have since recovered, Stellantis has struggled this year with lower-than-expected demand and increased competition from Chinese automakers.
In its first half results, the company’s net income fell 14 percent to 85 billion euros, while its net profit almost halved to 5.6 billion euros.
As a result, the Dutch company’s shares have plummeted around 44 percent this year.
Stellantis also lowered its annual profit forecast at the end of September: It now expects an adjusted operating profit margin of 5.5 to 7 percent for fiscal 2024, compared with a double-digit percentage previously estimated.
The group, which is Europe’s second-largest carmaker, also warned that cash flow would be negative by €5 billion to €10 billion rather than 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 concludes in early 2026.
Stellantis expects to announce his successor in the fourth quarter of next year following a formal process led by its president, John Elkann.
In parallel, the company unveiled a broader management restructuring on Thursday, with Doug Ostermann, former chief operating officer of its China division, replacing Natalie Knight as chief financial officer.
Meanwhile, Antonio Filosa will occupy the position of COO of the group in North America in addition to his position as CEO of the Jeep brand, succeeding Carlos Zarlenga.
Stellantis CEO Carlos Tavares said: “During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare for the future, better and faster than our competitors.”
He added: “The newly appointed members of the leadership team will make their valuable contributions to our overall team’s determination to meet the challenges ahead.”
Stellantis is the world’s fourth-best-selling automaker, behind Toyota, Volkswagen and Hyundai Motor Group, with about 6.4 million vehicles sold last year.
In addition to Peugeot and Citroen, its many other brands include Alfa Romeo, Dodge, Lancia, Maserati and Vauxhall.
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