Stellantis Shares Drop Following Management Shake-Up Announcement

Paris-listed shares in Stellantis NV experienced a decline in early trading on Friday following the announcement of a management restructuring intended to improve the company’s performance amid a period of declining profits and production cuts.

In a statement, Stellantis revealed that Antonio Filosa, the current Chief Executive Officer of the Jeep brand, will take on the role of Chief Operating Officer for North American operations. Additionally, Doug Ostermann has been selected to succeed Natalie Knight as Chief Financial Officer. The company also appointed new leaders for its operations in Europe and China, as well as a new CEO to oversee its Maserati and Alfa Romeo brands.

Furthermore, Stellantis confirmed that it is formally seeking a successor for CEO Carlos Tavares, who is expected to retire at the end of his term in early 2026.

“During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare ourselves for the future, better and faster than our competitors to deliver clean, safe and affordable mobility,” said Tavares.

These changes follow Stellantis’s decision to reduce its profit forecast for the current year in late September and its warning that it may consume more cash than previously expected. Weak global demand and increased competition in the vital Chinese car market have affected Stellantis, along with regional competitors such as Volkswagen and BMW.

Analysts at RBC Capital Markets noted that Stellantis is also facing challenges from “aggressive pricing” in North America and high dealer inventories. They expressed uncertainty regarding whether the management changes will effectively address these ongoing issues. Additionally, the prospect of Tavares’s retirement in 2026 adds further uncertainty to Stellantis’s future.