Carlos Tavares shakes up the Stellantis organization for his final year – 10/11/2024 at 2:25 p.m.

Facing difficulties in North America and Europe, Stellantis boss Carlos Tavares surrounded himself with close friends for his last year at the head of the group.

“In order to simplify and improve the performance of its organization in a turbulent global environment”, the board of directors meeting Thursday in the United States notably appointed Doug Ostermann, a specialist in the automotive industry until now director of operations in China, as financial director.

He replaces Natalie Knight, who arrived from other industries in 2023, and who will leave the group, Stellantis specifies in a press release.

– Commercial –

In North America, Jeep boss Antonio Filosa (and former head of Fiat-Chrysler in Latin America) takes control of operations. Stellantis is managing urgent overstock problems with cars priced too high and having difficulty selling.

For the European region, where sales have slowed and most manufacturers are in difficulty, the former boss of Opel Uwe Hochgeschurtz is replaced by a close friend of Carlos Tavares, Jean-Michel Imparato. He retains management of Stellantis’ utility vehicles but leaves control of Alfa Romeo to Santo Ficili.

Mr. Ficili, former director of Stellantis in Italy, also inherits the leather steering wheel of Maserati, the group’s luxury brand whose sales are disappointing.

This palace revolution aims, according to Stellantis, to “refocus the company on its main operational priorities and to tackle with determination the global challenges facing the automotive sector”.

Mr. Tavares continues to surround himself with close people on his management committee. But he also chose more “commercial” profiles, people comment within the group.

“In this period of Darwinian transformation for the automotive industry, our duty and ethical responsibility is to adapt and prepare for the future, better and faster than our competitors, in order to offer our customers clean mobility , safe and affordable,” noted Mr. Tavares.

The automobile group also confirmed on the night of Thursday to Friday the retirement of Carlos Tavares, 66, at the end of his mandate in January 2026.

For his part, John Elkann, chairman of the board of directors, assured directors of “unanimous” support for Mr. Tavares and the redistribution of roles.

The revolution did not completely convince the markets on Friday and the Stellantis share continued its decline on Friday with -3.74% at 1:45 p.m., to 11.73 euros, below its introductory price in 2021, on a stable market at Paris Stock Exchange.

– Difficulties –

The group with fifteen brands is going through a difficult time after years of record profits, since its founding in 2021 with the merger of PSA (Peugeot-Citroën) and FCA (Fiat-Chrysler).

Stellantis announced at the end of September a significant downward revision of its operating margin objective, now estimated between 5.5% and 7%, compared to “double figures” previously, for the year 2024.

Stellantis, which produces Chrysler as well as Citroën, Fiat, Jeep, Dodge, Lancia, Opel, Peugeot, Ram and Vauxhall, had already published a sharp fall in first-half results in July.

It was particularly handicapped by an 18% drop in sales in North America, the group’s cash machine. In the third quarter, these sales fell by another 20% year-on-year.

“The business strategy has proven itself,” insisted Mr. Tavares a week ago during a visit to the historic Peugeot factory in Sochaux (eastern France). “The company is not in difficulty in the sense of its survival but it is a serious warning,” he stressed.

On this occasion, the Portuguese boss also indicated that he could retire in January 2026.

The group indicated in its nightly statement that the process of identifying his successor at the end of his five-year term in January 2026 was now formally launched. It has been entrusted to a special committee of the board of directors, which must complete its work in the fourth quarter of 2025.

Before leading the creation of Stellantis in January 2021, Carlos Tavares became head of the PSA board in March 2014, only two months after joining the group. He came from Renault (2011-2013), where he began his career in 1981 but left for Nissan in 2004.