- Stellantis CEO Carlos Tavares will retire in 2026 after facing intense criticism from dealers and unions
- Tavares has faced backlash for cratering profits, leading the UAW president to criticize his performance as inadequate.
- The leadership shake-up includes several managerial changes as Stellantis prepares for a new era under different executives.
In the face of sharp criticism from dealerships throughout the United States and pressure from European retailers, Stellantis has confirmed that its current chief executive, Carlos Tavares, will retire when his current contract ends in early 2026.
Being the boss of a major car manufacturer is no easy job and many have suggested Tavares is to blame for cratering profits at Stellantis. Even the president of the United Auto Workers union (UAW), Shawn Fain, has asserted he is doing a “piss-poor” job as the head of the auto giant. Last month, company chairman John Elkann confirmed he’d started searching for Tavares’ successor but revealed the Portuguese businessman could stay on longer and sign a contract extension.
Read: Stellantis Euro Dealers Furious At CEO’s Refusal To Back Calls For Weaker Emissions Targets
However, the situation has evidently evolved. The board now appears to have solidified its stance, deciding that Tavares will step down at the end of his current term. This decision puts an end to speculation about a potential contract extension and signals a major leadership shift on the horizon.
Carlos Tavares became chief executive of Groupe PSA in 2014 and played a pivotal role in the merger between PSA and Fiat Chrysler Automobiles, which resulted in the creation of Stellantis. Last year, he earned $39.5 million—roughly 518 times the salary of the average Stellantis employee.
Leadership Shake-Up
Stellantis confirmed Tavares will step aside in a press release confirming a slew of other managerial changes. Most notably, existing Jeep chief executive Antonio Filosa has been appointed North America chief operating officer, while Jean-Philippe Imparato has been named chief operating officer enlarged Europe, replacing Uwe Hochgeschurtz, who will leave the company.
In addition, current chief operating officer Natalie King will leave the carmaker and be replaced by Doug Ostermann who previously served as Stellantis China’s chief operating officer. Maserati chief executive Davide Grasso will also step aside and be replaced by Santo Ficili, who will serve as the new CEO of Maserati and Alfa Romeo.
Commenting on the changes, Tavares remarked, “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”.
“The newly appointed leadership team members will make their valuable contributions to our overall team’s determination to tackle the challenges ahead, reinforcing and accelerating our transformation to become the preferred mobility tech company. I would like to thank everyone who contributed to lay the foundations for Stellantis’ future success,” he added.
