Stellantis CEO to exit in 2026 as automaker seeks U.S. revival

STORY: He recently warned of the threat to Western automakers from Chinese cars.

“This Chinese offensive is going to be huge, very brutal.”

But it seems Stellantis Chief Executive Carlos Tavares won’t be around to lead the defense.

The auto giant confirmed Thursday that Tavares will retire at the end of his contract in 2026.

It also announced sweeping management changes.

The moves come as the firm seeks a revival plan in North America.

It owns brands including Jeep and Ram, which have typically produced much of its profits.

But income has plunged of late, hit by bloated inventories that have led to heavy discounting.

Only last week, the firm cut its profit forecast for the year, and warned it could trim dividends.

Its stock is down over 40% just since January.

Tavares had led Stellantis since its creation in 2021.

It was formed from the merger of Fiat-Chrysler and Peugeot-owner PSA.

And he had previously been credited for making it one of the world’s most profitable automakers.

Now the Franco-Italian firm is searching for a new boss, and a new plan.

Tavares has previously warned that underperformers among its 14 brands could be axed.

The company is also aiming to ramp up output of EVs, with a plan to go all-electric in Europe by 2030.

And it wants to cut costs to beat the threat from those cheap Chinese vehicles.

But labor unrest could also pose a challenge.

Unions say Stellantis failed to keep commitments made last year as part of a deal to end a six-week strike.

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