Carlos Tavares, CEO of Stellantis, will retire in 2026 as the brand announces a major executive change

Stellantis profits plummeted during the first half of the year and Tavares faced backlash from European and North American dealers

                                        https://www.carscoops.com/author/bradcarscoops-com/                                    

Faced with harsh criticism from dealers in the United States and pressure from European retailers, Stellantis confirmed that current chief executive Carlos Tavares will retire when his current contract ends in early 2026.

Being the head of a major car manufacturer is not an easy job and many have suggested that Tavares is to blame for Stellantis’ falling profits. Even the president of the United Auto Workers (UAW) union, Shawn Fain, said he is doing a “terrible” job as head of the auto giant. Last month, the company’s president, John Elkann, confirmed that he had started looking for Tavares’ successor, but revealed that the Portuguese businessman could stay longer and sign a contract extension.

Read: Stellantis Euro dealers furious at CEO’s refusal to support calls for weaker emissions targets

Evidently, things have changed in recent weeks and the board has decided that it is best for Tavares to retire at the end of his current term.

Carlos Tavares became executive chairman of the PSA Group in 2014 and played a crucial role in the merger between PSA and Fiat Chrysler Automobiles, which gave rise to Stellantis. Last year, he earned $39.5 million, or about 518 times more than the average Stellantis employee.

Stellantis confirmed that Tavares will step aside in a press release confirming a number of other management changes. Most notably, current Jeep chief executive Antonio Filosa has been named chief operating officer for North America, while Jean-Philippe Imparato has been named chief operating officer for expanded Europe, replacing Uwe Hochgeschurtz, who will leave the company.

Additionally, current chief operating officer Natalie King will leave the automaker and be replaced by Doug Ostermann, who previously served as chief operating officer of Stellantis China. Maserati chief executive Davide Grasso will also step down and be replaced by Santo Ficili, who will serve as the new CEO of Maserati and Alfa Romeo.

“During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare for the future, better and faster than our competitors, to offer clean, safe and affordable mobility,” he said Tavares about the changes. “The newly appointed leadership team members will make valuable contributions to our overall team’s resolve to meet future challenges, strengthening and accelerating our transformation to become the mobility technology company of choice. I would like to thank everyone who contributed to laying the foundation for Stellantis’ future success.”