Stellantis shares slip after carmaking group unveils management shake-up

Investing.com -- Paris-listed shares in Stellantis (NYSE:STLA ) NV (EPA:STLAM ) fell in early trading on Friday after the carmaking giant announced a management level shake-up aimed at revitalizing its performance following a period of slipping profits and production cuts.

In a statement, the European firm said that Antonio Filosa, current Chief Executive Officer of its Jeep brand, has been appointed Chief Operating Officer of the group's North American operations.

Meanwhile, Doug Ostermann has been tipped to replace Natalie Knight as Chief Financial Officer. New heads in Europe and China were also named, as well as a fresh CEO in charge of Stellantis' Maserati and Alfa Romeo marques.

Separately, the company confirmed that it is in the formal process of identifying a successor to CEO Carlos Tavares, who is set to retire at the conclusion of his term at the helm of the business in early 2026.

"During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare ourselves for the future, better and faster than our competitors to deliver clean, safe and affordable mobility," Tavares said.

The announcements come after Stellantis, which was formed from a merger between Peugeot-parent PSA Group and Italian-American conglomerate Fiat Chrysler Automobiles in 2021, slashed its current-year profit forecast in late September. It also warned that it would likely burn through more cash than anticipated.

Weakening global demand and intensifying competition in crucial car market China have weighed on Stellantis, as well as regional peers like Volkswagen (ETR:VOWG_p ) and BMW (ETR:BMWG ).

Analysts at RBC Capital Markets added in a note to clients that Stellantis has also been hit by "aggressive pricing" in North America and high dealer inventories.

"It is unclear therefore how these management changes will reverse trends. Further, we believe these decisions on top of Mr. Tavares' retirement in 2026 add more uncertainty for Stellantis' prospects," the RBC analysts said.

Source: Investing.com