Stellantis shares fall after auto group reveals management shake-up By Investing.com

Investing.com — Shares of Paris-listed Stellantis (NYSE: ) NV (EPA: ) fell in early trading on Friday, after the auto manufacturing giant announced a management shakeup aimed at revitalizing its performance after a period of declining profits and production. cuts.

In a statement, the European firm said Antonio Filosa, the current chief executive 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 CFO. New heads of Europe and China have also been appointed, as well as a new CEO responsible for Stellantis’ Maserati and Alfa Romeo brands.

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

“In this Darwinian period for the automotive industry, it is our ethical duty and responsibility to adapt and prepare for the future, better and faster than our competitors, to provide clean, safe and affordable mobility,” Tavares said.

The announcements come after Stellantis, which was formed from a merger between Peugeot parent Groupe PSA and Italian-American conglomerate Fiat Chrysler Automobiles in 2021, cut its profit forecast for the current year at the end of September. It also warned that it would likely burn more money than anticipated.

Weakening global demand and intensifying competition in China’s crucial auto market have hurt Stellantis as well as regional peers such as Volkswagen (ETR: ) and BMW (ETR: ).

Analysts at RBC Capital Markets added in a note to clients that Stellantis was also hurt by “aggressive pricing” in North America and high dealer inventories.

“It is therefore unclear how these management changes will reverse the trends. In addition, we believe these decisions, in addition to Mr. Tavares’ retirement in 2026, bring more uncertainty to Stellantis’ outlook,” RBC analysts said.