Chrysler parent Stellantis (NYSE:STLA) confirmed on Thursday that CEO Carlos Tavares would retire at the end of his contract in early 2026 and announced major senior management changes as it struggles to turn around its lagging North American operations.
Earnings and sales in the French-Italian automaker’s traditional profit powerhouse have been declining, forcing it to cut its 2024 profit forecast last week and signal possible reductions to its dividend and share buybacks next year.
Analysts have downgraded the company’s stock, which has tumbled 42% this year after missteps in North America, where sales of popular products such as its Jeep and Ram trucks typically produce much of its profits.
The confirmation of Tavares’ retirement plans comes weeks after Stellantis said it was searching for his successor, though at the time it said it was possible he could remain after his contract expires. The world’s fourth-largest automaker by sales said it plans to name his successor by the fourth quarter of 2025.
Stellantis appointed Doug Ostermann, the former chief operating officer of its China division, as its finance chief, replacing Natalie Knight who is leaving the company.
The automaker also appointed Antonio Filosa as its North America chief operating officer in addition to his role as Jeep brand CEO, succeeding Carlos Zarlenga, whose future role has not been announced.
STLA shares lost 43 cents, or 3.2%, to $12.87.