Shortly before the start of the Paris Motor Show, heads are rolling at Stellantis. The European-American automaker announced a whole series of unexpected personnel changes to its board of directors on Friday night. They are intended to help “refocus the company on its most important operational priorities and decisively address the global challenges facing the automotive industry.” Unlike what is usual in such cases, they come into force immediately. However, Stellantis also made no secret of the fact that the times are anything but normal. A press release speaks of a “turbulent global environment”. The group with its 14 brands, created from the merger of Fiat-Chrysler and the PSA Group (Peugeot, Citroën, Opel), is suffering, like the other large European volume manufacturer Volkswagen, from the growing competitive pressure on the global car market. Above all, the new one Competition from China is causing problems for Stellantis. There are also profitability problems in North America. At the end of September, management drastically reduced its margin target for this year from at least ten percent to 5.5 to seven percent. The downward trend in Stellantis shares, which had been going on for months, then accelerated. Compared to the record high in March, the price has more than halved. At Stellantis, among other things, the CFO is being replaced. The American Natalie Knight, who has been in office for less than six months, is followed by her compatriot Doug Ostermann. He has so far been responsible for the Chinese business, where, unlike Volkswagen, Stellantis has barely had a presence, but is breaking new ground through a new partnership with the electric car manufacturer Leapmotor. Search for a successor for Tavares, who will retire in 2026. The time at Stellantis has also come to an end for the European boss and former Opel CEO Uwe Hochgeschurtz. From now on, the German’s position will be taken over by the Frenchman Jean-Philippe Imparato, who previously headed the commercial vehicle business and the Alfa Romeo group brand. There is also a new North American boss, the Italian Antonio Filosa, in addition to his position as head of the Jeep brand. Stellantis CEO Carlos Tavares spoke of a “time of Darwinian transformation of the automotive industry”. In this regard, it is “our duty and ethical responsibility to adapt and prepare for the future better and faster than our competitors.” Nevertheless, Tavares himself is also under fire. The board of directors has now formally announced the manager’s departure. As was further announced on Friday night, the process to find a future CEO for the period after Tavares’ term of office expires at the beginning of 2026 has begun. The 66-year-old Portuguese will then retire.More on the topic Whether Stellantis will be in calmer waters as a result of the personnel changes, initial assessments differ. The recent problems are due to aggressive pricing policies in North America and high dealer inventories, commented Tom Narayan, analyst at Royal Bank of Canada. It is therefore unclear how these management changes will reverse the trends. “Furthermore, we believe that these decisions, in addition to Mr. Tavares’ departure in 2026, add even more uncertainty to Stellantis’ prospects,” Narayan continued, lowering his price target on the stock.
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