Stellantis (STLA), a major player in the automotive industry, experienced a decline in its share value during early Friday trading following the company's announcement of a significant reshuffling of its executives. The redistribution of leadership roles comes as Stellantis grapples with dwindling sales.
As a part of the shakeup, the corporation behind the Jeep, Chrysler and numerous other automobile brands has announced the departure of CFO Natalie Knight. The company's China COO, Doug Ostermann, is set to fill the vacancy. Additionally, CEO of the Alfa Romeo brand, Jean-Philippe Imparato, will take on the role of CEO for the Enlarged Europe division, replacing outgoing Uwe Hochgeschurtz. Antonio Filosa, the current head of South American operations, is set to become the North America COO, stepping into Carlos Zarlenga's shoes. The company has indicated Zarlenga's next position will be clarified in an upcoming announcement.
The reshuffle further saw Gregoire Olivier become the COO in China, while Santo Ficili was appointed as the CEO of Maserati and Alfa Romeo. According to Stellantis, these changes are instrumental in re-emphasizing the paramount business priorities and directly addressing the international challenges that the auto industry is currently facing.
Stellantis CEO Carlos Tavares referred to the present situation as a "Darwinian period for the automotive industry," with the expectation that the restructured management team will effectively handle the imminent challenges.
Over the recent past, Stellantis has struggled to maintain its footing amidst a sluggish car market, surplus inventory, and increasing competition from Chinese manufacturers. Consequently, the automaker had to revise its outlook downwards last month following a substantial plunge in U.S. sales. Barclays, in response to the company's predicament, downgraded Stellantis's stock, indicating that any substantive recovery is unlikely until at least the first half of next year.
In the early Friday trading session, Stellantis shares fell by approximately 3% and have experienced an over 40% decline in value since the onset of the year.