Stellantis NV Chief Executive Officer Carlos Tavares managed to survive a disastrous collapse in profit by jettisoning his chief financial officer as part of a sweeping overhaul of his leadership team.

ROME (Reuters) -Stellantis Chief Executive Carlos Tavares said on Friday current European Union carbon emission rules impose 40% higher costs on the car-making industry at a time when customers are reluctant to buy expensive electric vehicles.

Stellantis said Friday CEO Carlos Tavares will retire in early 2026 as the struggling company announced what it called targeted management changes in a turbulent global environment for the auto industry.

Stellantis NV Chief Executive Officer Carlos Tavares managed to survive a disastrous collapse in profit by jettisoning his chief financial officer as part of a sweeping overhaul of his leadership team.

Struggling Italian carmaker Stellantis has ousted its CFO and confirmed its 66-year-old CEO will retire in two years in a major overhaul as the group tries to turn around a disastrous performance in the U.

Milan-listed shares in Stellantis slipped around 1% on Friday after the carmaker confirmed the retirement of CEO Carlos Tavares in 2026 and announced major senior management changes. Paris-listed shares were also down around 1% following the news.

Stellantis is replacing its finance chief Natalie Knight as part of a broad management overhaul. The automaker's move is an attempt to try to regain investor trust and stabilize a deteriorating business which has put CEO Carlos Tavares under intense pressure.