Automotive giant Stellantis has begun the search for a successor to CEO Carlos Tavares, who will step down in 2026.
Portuguese-born Tavares became head of the company in January 2021 following its creation from the merger of Fiat Chrysler Automobiles with Peugeot and Citroen owner, PSA Group, where he was also CEO.
His tenure at Stellantis began at the height of the Covid-19 pandemic, when global vehicle sales plummeted due to stringent lockdown restrictions and automakers cutting production due to semiconductor shortages.
Departure: Carlos Tavares (pictured) became head of Stellantis in January 2021 following its creation from the merger of Fiat Chrysler Automobiles with PSA Group
While car sales have since rebounded, Stellantis has been struggling this year with lower-than-expected demand and increased competition from Chinese automakers.
The first-half results show that the company's net revenue fell by 14 percent to 85 billion euros, while net profit almost halved to 5.6 billion euros.
As a result, the Dutch company's shares have fallen by around 44 percent this year.
In late September, Stellantis also lowered its full-year profit forecast – it now expects adjusted operating profit margin for fiscal 2024 of 5.5-7 percent, compared to a previously estimated double-digit percentage.
The group, which is Europe's second-largest carmaker, also warned that cash flow would be negative 5-10 billion euros instead of positive.
On the same day, it announced a recall of 94,000 Jeep plug-in hybrid electric SUVs in the United States due to fire hazards.
Tavares will step down as CEO of Stellantis at the end of his five-year term in early 2026.
Stellantis expects to announce its successor by the fourth quarter of next year, following a formal process led by its chairman, John Elkann.
In addition, the company announced broader management changes on Thursday, with Doug Ostermann, former chief operating officer of the China division, replacing Natalie Knight as chief financial officer.
Meanwhile, Antonio Filosa will serve as group chief operating officer in North America while also serving as CEO of the Jeep brand, replacing Carlos Zarlenga.
Stellantis CEO Carlos Tavares said: “In this Darwinian period for the automotive industry, it is our duty and ethical responsibility to adapt and prepare for the future better and faster than our competitors.”
He added: “The newly appointed members of the leadership team will make a valuable contribution to the determination of our entire team to face the challenges ahead.”
Stellantis is the world's fourth-largest selling automaker after Toyota, Volkswagen and Hyundai Motor Group, with about 6.4 million vehicles sold last year.
In addition to Peugeot and Citroen, many other brands include Alfa Romeo, Dodge, Lancia, Maserati and Vauxhall.
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