Stellantis announced management reforms at global car brands
Unlock Editor’s Digest for free
Roula Khalaf, FT Editor, picks her favorite stories in this weekly newsletter.
Stellantis has announced a comprehensive overhaul of global management as the European carmaker behind the Peugeot, Fiat and Jeep brands seeks to reverse its fortunes amid falling profits and cuts. Strong output.
The automaker said Thursday night that Antonio Filosa, Jeep’s CEO, will be the new head of its U.S. operations and that Doug Ostermann will replace Natalie Knight as the group’s chief financial officer. group. The Maserati and Alfa Romeo marques will have new CEOs and there will be new CEOs for the China and Europe regions.
CEO Carlos Tavares saying that “in these Darwinian times for the auto industry, it is our moral duty and responsibility to adapt.”
ONE profit warning Last month, the Paris-listed auto group highlighted its struggle against Chinese electric vehicle competition and the weak demand it is suffering in key markets, including America, where inventories are piling up.
Stellantis was expecting positive cash flow this year, but warned that it now expected outflows to be in the range of €5bn-€10bn. It also changed its adjusted operating margin guidance for the year from 10% to between 5.5% and 7%.
Stellantis shares have nearly halved their value since last year as the Chrysler and Jeep maker tried to turn around its US business by aiming to reduce high inventory levels by a quarter by early 2025.
The group has also argued with governments in Europe over the issue Electric vehicle subsidies, threatens to move production overseas and cut local jobs.
Tavares will face lawmakers in Rome on Friday, where he is expected to be questioned about the group’s plans for factories in Italy, where a total of 10,000 workers have been furloughed. allowed amid weak demand.
In June, Stellantis, which owns the Vauxhall brand in the UK, also warned it would move production abroad unless the UK government made changes to its electrification policy and did more to support Support electric vehicle sales.
Stellantis, whose largest shareholder is Exor, the parent company of the Italian billionaire Agnelli family, was formed in 2021 through a merger between Fiat Chrysler and France’s PSA, owner of Peugeot. The outspoken leader of the group, whose term ends in 2026, joined PSA in 2014 and was instrumental in forming the coalition. Stellantis said in the statement that the search for Tavares’ successor, led by chairman John Elkann, “is already underway” and will be completed by the end of next year.
Tavares described the group’s falling profits this year as a “bump in the road” and vowed to “fix” them. He blamed the problems on poor marketing and turnover between older models and those launched this year. Known for ruthless cost-cutting, Tavares said he sees “absolutely no taboo” in potentially cutting some brands if their operations warrant it.
Analysts say the sweeping management changes will be seen as a sign that the CEO has no intention of stepping down before the end of his term and is seeking to regain control of the group after a number of setbacks. failure.
People familiar with his views also said Tavares initially did not want to step down in 2026 and hoped to extend his term. But for now, he is looking forward to completing his term and has just over a year to perfect the marketing and pricing strategy in the US.
“He was brutal in the way he cut costs and he had such an authoritarian personality that he killed the management teams around him, so it was necessary,” said one person who worked with him in Paris. must continue to improve.”
A person close to Stellantis said the company’s current difficulties ultimately stem from Tavares’ decisions. “When you talk about management, there is only one person and that is Carlos Tavares,” he said.
