Stellantis CFO Vows to Rebuild Trust After Exit of CEO
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Stellantis NV is working to rebuild trust with dealers, suppliers, unions and governments after a period of tension under former CEO Carlos Tavares.
There were “increasing diversions” between the ousted CEO and the board over what decisions should be taken for the longer-term benefit of the company, Chief Financial Officer Doug Ostermann said Dec. 4.
“We need to build back trust,” the CFO said at a Goldman Sachs conference in London, adding that he’s confident Stellantis can show “significant improvement” on margins next year.
Ostermann is part of a committee led by Chairman John Elkann that’s shaping decisions until a new CEO is found. The maker of Jeep SUVs and Peugeot cars is under pressure to halt a sales slide in the U.S. and tackle overcapacities in Europe, where demand for electric cars is waning just as Chinese manufacturers expand in the region.
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There were no disagreements with Tavares on long-term strategy, Ostermann said, including on tapping growth in fast-growing markets such as Latin America and the company’s asset-light approach in China.
There’s “very strong reasons to believe” Stellantis will improve on profitability next year, in part because the company is ahead of plan in bringing down bloated inventories in the U.S., the CFO said. The automaker is betting on new Ram and Jeep products including a midsized SUV to replace the Jeep Cherokee.
Stellantis would be able to shift production if President-elect Donald Trump imposes tariffs on cars made abroad, Ostermann said. Still, any tariffs are “not ideal.”
