CEO Tavares Steps Down in 2026; Stellantis Faces Industry Challenges

Stellantis, the multinational automaker, announced on Friday that its CEO, Carlos Tavares, will retire in early 2026. This decision comes amid what Tavares described as a "Darwinian period" in the global auto industry. The company has also been struggling with falling sales; in the third quarter of 2024, their sales dropped by 20%, with notable decreases in Chrysler and Dodge brand sales. A special committee from the board is tasked with finding a replacement for Tavares. This committee aims to complete their search by the fourth quarter of 2025. Other leadership changes were also announced to help steer the company through these challenging times. Antonio Filosa, previously CEO of Jeep, now takes on the additional role of North America Chief Operating Officer, replacing Carlos Zarlenga. Jean-Philippe Imparato is now the Chief Operating Officer for Enlarged Europe and succeeds Uwe Hochgeschurtz, who is leaving the company. Doug Ostermann has been appointed as the new Chief Financial Officer, taking over from Natalie Knight, who is also leaving. Gregoire Olivier will now serve as the CEO for Stellantis in China, in addition to his role as Liaison Officer to Leapmotor. Santo Ficili is the new CEO of Maserati and Alfa Romeo. The Supply Chain organization is being moved to the Manufacturing Division, led by Arnaud Deboeuf, previously under Maxine Picat in the Purchasing Division. Tavares believes that these leadership changes will help the company adapt and prepare for the future better than its competitors. The chairman of the board, John Elian, supports these decisions, stating that the board is confident that these steps will strengthen the leadership team and restore the company's performance to industry-leading levels. However, the company has faced other issues, such as a recall of 154,000 Jeep Wrangler and Grand Cherokee hybrids due to fire risks on October 1. Additionally, the United Auto Workers (UAW) union has accused Stellantis of violating its labor contract by moving Dodge Durango production from the Detroit Assembly Complex to Canada. The UAW is considering a strike authorization vote, with a statement on their website saying, "Thousands of UAW members sacrificed on the picket line to win this contract, and we intend to enforce it, even if that means going back on strike. " The UAW fears that these actions will lead to job losses in the United States.