(MENAFN- AFP) The struggling auto giant Stellantis said late Thursday that its CEO Carlos Tavares will retire in 2026 when his contract runs out and it is now looking for a successor.
The US-French-Italian company whose brands include Chrysler, Citroen, Fiat and Jeep is going through a rough patch, in particular with sales in North America, its cash cow.
Late last month, Stellantis cut its profit forecast, citing efforts to improve its sagging US business as well as competition from Chinese automakers.
The company, which also makes Maserati and Dodge cars, said on September 30 it expected an adjusted operating income margin of 5.5 to 7.0 percent -- not the double-digit growth it had anticipated.
In a statement issued late Thursday, the group said: "To drive simplification and enhance organisational performance in a turbulent global environment, Stellantis today announced targeted management changes, effective immediately."
Stellantis said it wants to "redouble the company's focus on its key business priorities and confront head-on the global challenges facing the industry."
The statement announced senior management changes in addition to the departure of the CEO.
It said Doug Ostermann, until now the head of operations in China, will become chief financial officer and replace Natalie Knight, who is leaving the company.
In another departure, Uwe Hochgeschurtz, who was in charge of European operations, will be replaced by Jean-Philippe Imparato.
Also, Antonio Filosa will take over for Carlos Zarlenga as head of operations for North America but also keep his job as CEO of the Jeep brand. Zarlenga's new assignment was not immediately announced.
Tavares said in the statement, "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."
In an illustration of Stellantis's woes, in July it published an earnings report that showed its performance down sharply in the first six months of the year as vehicle sales in North America -- the company's main source of profits -- were down 18 percent.
And in the third quarter those same North American sales fell another 20 percent compared to the same stretch of last year.
Tavares, who is from Portugal, said a week ago during a visit to a Peugeot plant in France that car companies around the world are struggling, not just Stellantis.
At the same time, he said he might retire in January 2026.
"In 2026, the person sitting answering you will be 68 years old -- that's a reasonable age to retire. It's an option," Tavares told reporters at the factory in Sochaux in eastern France.
Stellantis said the hunt for a replacement for Tavares is underway.
It has been assigned to a special committee that is supposed to wrap up its work in late 2025, the statement said.
Stellantis is the result of the merger in 2021 of Peugeot-Citroen and Fiat-Chrysler.
In electronic trade after the session closed Thursday in New York, Stellantis shares were up 0.36 percent.
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