Stellantis, the French-Italian automaker, is facing a turbulent period as its shares continue to slide following the announcement of significant executive changes. The company confirmed that CEO Carlos Tavares will retire in 2026, prompting a major management reshuffle aimed at addressing declining sales and profits, particularly in North America.

The automaker, which owns brands such as Peugeot, Fiat, Jeep, and Ram, has been struggling with a 45% drop in its stock value year-to-date. This decline was exacerbated by a recent profit warning and the announcement of potential reductions in dividends and share buybacks. The company's challenges are compounded by the rising costs of complying with European Union carbon emission rules and stiff competition from Chinese electric vehicle (EV) manufacturers.

In response to these challenges, Stellantis has replaced its Chief Financial Officer Natalie Knight and North American Chief Carlos Zarlenga, appointing Doug Ostermann and Antonio Filosa to these roles, respectively. Despite these changes, analysts remain skeptical about the company's ability to reverse its fortunes, citing high pricing and inventory issues in North America as significant hurdles.

Chairman John Elkann has expressed support for Tavares, despite speculation about his early departure. However, some investors believe that more radical changes are necessary to steer the company back on track.

Stellantis is also focusing on expanding its electric vehicle lineup, aiming for 100% of its passenger car sales in Europe to be electric by 2030. The company plans to introduce 75 electric models globally by then, as it seeks to compete with Chinese EV makers who are rapidly gaining market share.

The management shakeup and strategic shifts come at a critical time for Stellantis, as it navigates a "Darwinian period" in the automotive industry, according to Tavares. The company is under pressure to adapt quickly to ensure its future success in a rapidly changing market.