- Stellantis was created from the merger of Fiat Chrysler and PSA Group
- Tavares’ tenure at Stellantis began at the height of the Covid-19 pandemic
Automaking giant Stellantis has started the search for a successor to chief executive Carlos Tavares, who will step down in 2026.
Portuguese-born Tavares became the company’s boss 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 were plummeting due to harsh lockdown restrictions and carmakers scaling back production amidst a shortage of semiconductors.
Departure: Carlos Tavares (pictured) became Stellantis boss in January 2021 following its creation from the merger of Fiat Chrysler Automobiles with PSA Group
While motor sales have since recovered, Stellantis has struggled this year with lower-than-expected demand and increased competition from Chinese car manufacturers.
In its first-half results, the firm’s net revenue fell by 14 per cent to €85billion while its net profit nearly halved to €5.6billion.
As a result, the Netherlands-based company’s shares have plunged by around 44 per cent in value this year.
Stellantis also reduced its annual profit forecast in late September – it now expects an adjusted operating profit margin of 5.5 to 7 per cent for the 2024 financial year, compared to a double-digit percentage as previously estimated.
The group, which is Europe’s second-largest automaker, also warned that cash flow would be negative €5billion to €10billion instead of positive.
On the same day, it announced the recall of 94,000 plug-in hybrid electric Jeep SUVs in the United States due to fire safety risks.
Tavares will stand down as Stellantis’s CEO when his five-year term concludes in early 2026.
Stellantis expects to announce his successor by the fourth quarter of next year following a formal process led by its chairman, John Elkann.
Alongside this, the firm unveiled a wider management shake-up on Thursday, with Doug Ostermann, the former chief operating officer of its China division, replacing Natalie Knight as finance boss.
Meanwhile, Antonio Filosa will hold the group’s COO position in North America alongside his role as Jeep brand CEO, succeeding Carlos Zarlenga.
Tavares said: ‘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.’
He added: ‘The newly appointed leadership team members will make their valuable contributions to our overall team’s determination to tackle the challenges ahead.’
Stellantis is the world’s fourth-biggest selling automaker behind Toyota, Volkswagen, and Hyundai Motor Group, with around 6.4 million vehicles sold last year.
Aside from Peugeot and Citroen, its many other brands include Alfa Romeo, Dodge, Lancia, Maserati, and Vauxhall.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .