After a Very Rough Year, Stellantis CEO Will Retire Amid Executive Shuffle

Stellantis, the global automaker which sells brands like Jeep, Dodge, Chrysler, Alfa Romeo, and Fiat in the U.S., announced that Carlos Tavares will officially retire following his conclusion as CEO in early 2026. Unfortunately, his tenure hasn't been marked with much success, as the automaker continues to struggle with falling sales, market share, revenue, and profit margins in North America. Stellantis reported a $6 billion profit for the first half of the year, down a whopping 48 percent. More cutting is needed and buyouts are now being offered in North America. He's also called for EVs to sell at the same price as ICE-powered vehicles, but has resisted calls to cut the price of all-electrics as other OEMs have, stating that he will not participate in a race to the bottom. And while Tavares states that he may look at selling or killing off Stellantis brands, he refuses to calve off its EVs into a separate business unit.

The company revealed that a formal process to replace Tavares is already being conducted by a Special Committee of the Board and chaired by John Elkann, Executive Director of Stellantis Board of Directors. The committee plans to have a choice by the fourth quarter of 2025.

Tavares' exit is just the latest part of the shakeup that’s been happening at Stellantis. The company brought on a new top man in North America back in January. By February, Carlos Zarlenga replaced Mark Stewart as North America chief operating officer. Now, not even a year later, Zarlenga is stepping down as Stellantis North America Chief Operating Officer with Jeep CEO Antonio Filosa stepping up to the plate.

Just before stepping down as Stellantis North America COO, Zarlenga was president of Stellantis Mexico, which increased sales, market share and return on investment in 2023, ending the year with the best profit level ever recorded in that market. He joined Stellantis in 2022 from General Motors, where he was previously president of GM South America. In a somewhat similar fashion, Antonio Filosa had come from leading the South America Region of Stellantis. He was then moved to CEO of Jeep in September 2023 and now will also serve as the COO of North America.

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"In the very demanding North American market with many obstacles to overcome in order to foster the performance of the Company, Carlos Zarlenga is the best leader among our talent pool to replace Mark Stewart and to drive the change in our business model towards electrification in the region," Stellantis CEO Carlos Tavares said in his original statement back in January. "Carlos Zarlenga has demonstrated his ability to bring together and unite diverse teams and to deliver the expected results."

For Filosa, Stellantis pointed to his success in driving increased revenue, quality, and market share to Stellantis’ South American Region and said he, “brings a wealth of business and leadership experience to this new role.”

Stewart became chief operating officer of Fiat Chrysler Automobiles North America in 2018 and was COO of Stellantis North America for three years. In thanking Stewart for his contribution to the company, Tavares said he wished him well in a new position back in January. Stewart left the automaker to become CEO and president of Goodyear Tire and Rubber Company.