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.
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?
Hi, my name is Disha and I’m a passionate writer and editor at “Jason Deegan”. With a keen interest in all things tech, I strive to bring you the latest news and updates from the world of high-tech.