Stellantis’ CEO promises to leave in 2026 after mostly making a mess of things

Stellantis is shaking up its leadership. The company announced today that CEO Carlos Tavares will retire at the end of his contract in 2026, and a host of other executives are being shuffled around immediately. The changes come as Stellantis struggles to manage its US auto business, which includes Chrysler, Jeep, Dodge, and Ram. The company is actively looking for Tavares’ successor.

On his way out, the executive shakeup includes replacing the current CFO, Natalie Knight, and North American COO, Carlos Zarlenga, with the company’s China COO, Doug Ostermann, and the Jeep brand CEO, Antonio Filosa, respectively. Knight is leaving the company, Filosa will keep his role at Jeep in addition to becoming North American COO, and Zarlenga’s new position will be announced later.

Tavares has led Stellantis since the company’s inception in 2021, which resulted from a merger between Fiat Chrysler and Peugeot SA. While the company was profitable in 2023, it’s been slow to adopt electric vehicles compared to almost every other automaker, and prices of popular models under Jeep and Ram started to skyrocket.

Now, Stellantis has cut its profit forecast for the year, and its stock is falling. The automaker is accused by its dealership partners of degrading its American brands, slowing timelines between products, and not releasing affordable vehicles.

The United Auto Workers union also accuses Stellantis of not upholding contract commitments. Reuters asked UAW for comment, and a representative sent them a picture of Tavares in a trash can. UAW workers had gone on strike last year.

Meanwhile, Michigan’s governor is in contact with Tavares to keep Stellantis’ North American headquarters in the state as the company threatens to leave. The automaker recently announced it’s retooling its Michigan plants and teased a new (presumably more affordable) Jeep Compass.