Carlos Tavares to Exit Stellantis at End of 2025: What’s Next for the Auto Giant?

Carlos Tavares, the CEO of Stellantis, has confirmed his retirement set for the end of 2025 or early 2026. The automotive giant has already initiated the search for his successor as the company navigates an increasingly complex industrial landscape.

Planned Retirement on the Horizon

Carlos Tavares, who has led Stellantis since its founding in 2021, will officially retire in January 2026 at the age of 68. The current CEO views this age as a reasonable time to step down after a notable career highlighted by the merger of Peugeot-Citroën and Fiat-Chrysler. This planned decision kicks off a transitional phase for the company, which has begun the process of finding his replacement. A special committee led by John Elkann is already in place to oversee this process, expected to conclude by the end of 2025.

Internal Reorganization to Tackle a Tough Market

Concurrent with the announcement of Tavares’s departure, Stellantis has revealed immediate changes in its executive team to streamline operations and boost performance. Doug Ostermann, the former operations director in China, steps in as the new CFO, replacing Natalie Knight, while Jean-Michel Imparato will lead the Europe region. These adjustments aim to refocus the group’s priorities amid challenges in the automotive sector, particularly the declining sales in North America, a crucial market for Stellantis.

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Challenging Global Market Conditions

Stellantis is experiencing tough times, with an 18% drop in sales in North America in the first half of 2024, followed by an additional 20% decrease in the third quarter. The group has consequently had to lower its operational margin target for 2024, now estimated between 5.5% and 7%. This adjustment highlights the overall deterioration of the automotive market, impacting not only Stellantis but also other major manufacturers like Volkswagen and BMW.

Global Challenges

Under Carlos Tavares’s leadership, Stellantis has proactively faced these challenges by adjusting its organization and focusing on its operational priorities. For instance, the company has integrated supply management with its industrial management to enhance commercial performance. In what Tavares describes as a Darwinian transformation of the industry, he continues to emphasize the need for rapid adaptation to provide sustainable, safe, and affordable mobility solutions to its customers.

What are your thoughts on the Carlos Tavares era? What kind of personality should his successor have, in your opinion?

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