Stellantis, the automotive giant behind iconic brands like Jeep, Ram, Dodge, and Fiat, has announced significant changes to its executive team, including plans for CEO Carlos Tavares to retire when his contract ends in early 2026.
Amidst slumping profits, declining U.S. market share, and growing tension with dealers, Stellantis aims to stabilize its business through these leadership changes.
CEO Carlos Tavares to Step Down in 2026
Stellantis confirmed that Tavares will retire in 2026 as the company initiates a comprehensive succession plan. The board has established a special committee, led by Chairman John Elkann, to oversee the selection of Tavares’s successor.
The company aims to finalize the transition by the fourth quarter of 2025, ensuring a smooth handover of responsibilities.
Tavares’s departure has been the subject of industry speculation for months.
In response to a news report suggesting that Stellantis was already seeking a replacement, the company clarified that succession planning is routine but didn’t confirm Tavares’s retirement until now.
Key Executive Changes
The succession plan includes a series of high-profile executive changes:
- Antonio Filosa: The current Jeep CEO will assume the role of North American Chief Operating Officer, succeeding Carlos Zarlenga. Filosa will also continue to oversee the Jeep brand, positioning him to lead a revival effort in Stellantis’s largest market.
- Doug Ostermann: The China Chief Operating Officer will replace Natalie Knight as Chief Financial Officer. Knight, who took on the CFO role last year, is one of several departing executives in a major restructuring effort.
- Jean-Philippe Imparato: CEO of Alfa Romeo, Imparato will step into the role of European COO, replacing Uwe Hochgeschurtz, who is also leaving Stellantis.
These changes come as Stellantis grapples with a steep drop in profit guidance, which has caused its stock to slide over 40percent this year.
In addition to the restructuring, Stellantis will focus on cost-saving measures, including heightened scrutiny over vendor spending, a strategy Knight coined as “the doghouse.”
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Pressures on Stellantis’s U.S. Market Performance
The restructuring is part of a broader strategy to address significant issues within Stellantis’s U.S. operations. Sales have declined, and the company is losing ground to competitors like General Motors and Ford.
During the first half of 2024, Stellantis brands held their lowest U.S. market share since 1970, according to Wards Intelligence.
Stellantis dealers have raised concerns about the high prices of the company’s vehicles, arguing that this has driven away price-sensitive customers.
In an open letter last month, members of a dealer advisory group criticized Tavares’s leadership, accusing him of making “disastrous choices” that have led to mounting inventories and missed sales opportunities.
The company has since responded by ramping up sales incentives and rebates in North America, though these promotions have contributed to Stellantis’s recent profit warning.
A Path Forward with New Leadership
Antonio Filosa, a seasoned executive with a strong track record in Latin America, will now oversee North American operations as Stellantis works to reclaim market share.
Filosa previously held senior roles at Fiat Chrysler Automobiles, which merged with France’s PSA Group to form Stellantis in 2021.
Known for his experience with brands like Alfa Romeo and Maserati, Filosa is expected to drive efforts to revitalize Stellantis’s flagship brands, particularly Jeep and Ram, in the U.S. market.
Stellantis’s plan to boost North American sales includes targeted promotions and more competitive pricing strategies to address dealer concerns and improve market positioning.
However, the company’s focus on cutting costs has also introduced challenges.
Dealers have pointed out that the company’s piecemeal approach to discounts and financing offers has left them struggling to keep up with competitors’ more consistent pricing strategies.
Financial Struggles and Market Challenges
Despite achieving higher profits than competitors Ford and GM last year, Stellantis’s financial position has worsened in 2024.
The company has cut profit projections for the year and faces growing criticism over its inability to respond quickly to market changes.
Analysts suggest that Stellantis’s struggles are partially due to an over-reliance on high pricing and limited use of rebates.
While Tavares has implemented strategies to conserve cash, some dealers argue that Stellantis needs to invest more in consumer incentives to remain competitive.
Amid these financial difficulties, Stellantis has seen several key executives exit the company. CFO Natalie Knight, appointed just last summer, will step down as part of the restructuring.
Uwe Hochgeschurtz, who served as the operating chief for Europe, will also depart, making way for Alfa Romeo CEO Jean-Philippe Imparato.
The high turnover rate within Stellantis’s senior leadership reflects ongoing challenges as the company adapts to market pressures.
A Critical Juncture for Stellantis
As Stellantis moves forward with its CEO succession plan and management shake-up, the company faces a critical juncture.
The changes aim to streamline leadership, enhance accountability, and address mounting operational concerns. With the search for Tavares’s successor underway, the company hopes to find a leader who can navigate the challenges of a highly competitive automotive industry while re-establishing Stellantis’s position in key markets like North America.
The restructuring represents both a challenge and an opportunity for Stellantis. While the company must contend with financial pressures and a fiercely competitive landscape, it also has the potential to refocus its strategy and strengthen its brand portfolio.
The management changes underscore Stellantis’s commitment to driving growth and creating a sustainable future for its iconic brands.
Looking Ahead: Stellantis’s Strategic Evolution
As Stellantis prepares for a new era under a fresh leadership team, it faces the dual tasks of bolstering profitability and regaining lost market share.
The company’s future CEO will need to steer Stellantis through an evolving automotive landscape, marked by increased competition and changing consumer expectations.
With a robust lineup of brands and a revamped management team, Stellantis is positioning itself for a transformation that will define its path in the coming years.
