Stellantis' top level shake-up fails to provide quick boost

LONDON: Shares in French-Italian automaker Stellantis resumed their decline today after the carmaker confirmed the retirement of CEO Carlos Tavares in 2026 and announced other management changes which failed to lift sentiment.

The moves came after the Chrysler parent last week cut its 2024 profit forecast and signalled possible reductions to its dividend and share buybacks next year.

It was unclear how the management changes will reverse trends around Stellantis' issues rooted in aggressive pricing in North America and high dealer inventories, RBC analyst Tom Narayan said in a note.

"Further, we believe these decisions on top of Mr. Tavares' retirement in 2026 add more uncertainty for Stellantis' prospects," he added.

Paris and Milan-listed shares were down 2.4% at 0833 GMT.

Including Friday's move the Milan-listed stock has dropped more than 43% year-to-date, lagging its European rivals.

"We believe that things may have to get worse before they improve," brokerage Banca Akros said in a note.

The confirmation of Tavares' retirement plans came weeks after Stellantis said he could remain after his contract expires.

The world's fourth-largest automaker by sales said it now planned to name his successor by the fourth quarter of 2025.

Stellantis appointed Doug Ostermann, the former chief operating officer of its China division, as finance chief, replacing Natalie Knight who is leaving the company.

The automaker also appointed Antonio Filosa as its North America chief operating officer in addition to his role as Jeep brand CEO, succeeding Carlos Zarlenga.

Analysts at JPM were more upbeat about the company's prospects, saying the shake-up provides visibility with regard to the management structure and a clear commitment to find a successor for Carlos Tavares.

Tavares, an avid race car driver who was widely heralded in prior years for making Stellantis one of the world's most profitable automakers, has led the company since its creation through a 2021 merger between Fiat-Chrysler and Peugeot maker PSA, where he had been board chair since 2014.