Stellantis, the automotive company behind brands such as Jeep and Chrysler, has announced a series of notable leadership transitions, including the planned retirement timeline of CEO Carlos Tavares and the exit of its chief financial officer, as the company faces challenges in rejuvenating sales within North America.
Replacing Chief Financial Officer Natalie Knight will be Doug Ostermann, who is currently serving as the chief operating officer in China. Along with the change in the CFO position, Stellantis has also appointed new chief operating officers for both North America and Europe. These shifts come as the company seeks to restructure and strengthen its leadership amid ongoing sales pressures.
As the fourth largest automaker globally, Stellantis disclosed in September its search for a successor to Tavares, who is 66 years old, as part of an organized transition. With Tavares’ five-year contract set to expire in 2026, there was an indication that he might stay in his role longer, although the company confirmed this week that he would officially retire at the beginning of 2026.
Tavares has faced criticism from U.S. dealers and the United Auto Workers union due to a disappointing financial performance this year, which was mainly attributed to an excess of high-priced vehicles remaining unsold at dealer lots. To counteract these issues, he has initiated cost-cutting measures, which include postponing factory openings, reducing union workforce numbers, and offering buyout options for salaried employees.
In the previous month, Stellantis reduced its earnings outlook, citing the need for greater investments to revitalize its U.S. operations amid a broader industry recession and rising competition from Chinese automakers. The company also stated that it is speeding up efforts to refine its North American operations, targeting an inventory limit of no more than 300,000 vehicles by the year’s end, compared to the initial goal set for the first quarter of 2025.
Founded in 2021 after the merger of PSA Peugeot and Fiat Chrysler Automobiles, Stellantis announced that the official process of finding Tavares’ successor has commenced. This process, overseen by a special committee of the board, is expected to conclude by the end of 2025.
Following the news, shares of Stellantis dropped nearly 5% at the start of trading on Friday.
