• Stellantis CEO Carlos Tavares to retire in 2026
• Stellantis already searching Tavares’ successor
• Stellantis initiates leadership change to turn around poor performance in North America

Stellantis on Thursday confirmed that CEO Carlos Tavares will retire in early 2026 when his current contract expires.

The company in September said it was already searching for a successor for Tavares, though it said at the time that renewing Tavares’ contract was still on the table.

The announcement of Tavares’ planned exit from Stellantis follows a meeting of the board of directors this week, where several changes to the company’s leadership were made. The changes come as Stellantis struggles to turn around steep losses in North America.

Key among the leadership changes is the replacement of Chief Financial Officer Natalie Knight by Doug Ostermann, and the replacement of North America Chief Operating Officer Carlos Zarlenga by Antonio Filosa. Knight is leaving the company while Zarlenga will be moved to another position, Stellantis said. Filosa is currently head of Jeep and will keep that position while also heading the North American division.

Tavares has served as Stellantis’ CEO since the company was formed in 2021 from the merger of Fiat Chrysler Automobiles and France’s PSA Group. He managed to make some efficiency improvements across the company’s 14 brands shortly after the merger, but came under fire this year after Stellantis in July reported a decline of 48% in net profits year-over-year.

The poor performance has led Stellantis to cut its profit forecast for 2024 and signal possible reductions to its generous dividend and share buyback programs, Reuters reported on Oct. 3.

The decline is mostly due to falling sales in the U.S., where dealers are also angered by some of the strategies Tavares has been executing. Many of their grievances were listed in an open letter to Tavares issued in August by the Stellantis National Dealer Council. The letter included complaints about “reckless short-term decision-making” to secure record profits in 2023, plus the “rapid degradation” of Stellantis’ U.S. brands, which include Chrysler, Dodge, Jeep, and Ram.

Stellantis in September responded to the letter, stating that it has developed a plan with the dealer body to help boost sales and reduce inventories. Stellantis has also initiated some cost cutting measures, and Tavares in July warned that some brands could be dropped if they continue to underperform.