FT : Stellantis unveils management shake-up at global car brands

Stellantis unveils management shake-up at global car brands
Chief executive Carlos Tavares seeks to turn fortunes around amid falling profits, production issues and fights over EVs

Stellantis has announced a radical global management shake-up as the European carmaker behind the Peugeot, Fiat and Jeep brands seeks to reverse its fortunes amid declining profits and steep production cuts.

The carmaker said on Thursday night that Antonio Filosa, CEO of Jeep, would be the new head of its US operations, and Doug Ostermann would replace Natalie Knight as group chief financial officer. The Maserati and Alfa Romeo marques would have a new chief executive, and there would be new chief operating officers for the China and Europe regions.

Chief executive Carlos Tavares said that “during this Darwinian period for the automotive industry our duty and ethical responsibility is to adapt”.

A profit warning last month from the Paris-listed car group highlighted its struggles in fending off Chinese electric vehicle competition and the waning demand it was suffering in its main markets, including the US, where inventories have been piling up.

Stellantis had expected positive cash flow this year, but warned that it now expected outflows in the range of €5bn-€10bn. It also changed its adjusted operating margin guidance for the year from 10 per cent to between 5.5 per cent and 7 per cent.

Tom Narayan, analyst at RBC Capital Markets, questioned the management shake-up, saying the challenges at the group stem from aggressive pricing in North America and high dealer inventories. “It is unclear therefore how these management changes will reverse trends,” he said in a note, adding that the latest decisions, on top of Tavares’s term ending in 2026, would “add more uncertainty for Stellantis’ prospects”. 

Stellantis shares have almost halved in value since last year as the Chrysler and Jeep manufacturer has tried to turn around its US business by aiming to reduce high levels of inventory by a quarter by early 2025.

The group has also locked horns with governments in Europe over EV subsidies, threatening to move production abroad and cut local jobs. 

Tavares will face lawmakers in Rome on Friday where he is expected to be grilled over the group’s plans for its Italian plants where a total of 10,000 workers have been furloughed amid waning demand.

In June Stellantis, which owns the Vauxhall brand in the UK, also warned it would move production abroad unless the British government made changes to its electrification policy and did more to support EV sales. 

Stellantis, whose largest shareholder is Exor, the holding company for Italy’s billionaire Agnelli family, was created in 2021 through a merger between Fiat Chrysler and France’s PSA, owner of Peugeot.

The group’s outspoken chief joined PSA in 2014 and was instrumental in forming the alliance. Stellantis said in the statement that the search for a successor to Tavares, led by chair John Elkann, was “already under way” and would be completed at the end of next year.

Tavares has described the group’s declining profits this year as a “bump in the road” and vowed to “fix” them. He blamed the issues on bad marketing strategies and the turnover between older models and those launching this year. Known for ruthless cost-cutting, Tavares said he saw “absolutely no taboo” in potentially cutting some brands if their performance prompted it. 

The sweeping management changes, analysts say, will be seen as a sign the CEO is not planning to step down before the end of his term and is seeking to regain control of the group following a number of setbacks. 

People familiar with his views also said Tavares had not initially been keen to step down in 2026, and had hoped to renew his mandate. But he is now keen to complete his term, giving him just over a year to fix the pricing and marketing strategy in the US.

“He’s been brutal in the way he’s cut costs, and he has an authoritative streak that kills off management teams around him, too, so that needs working on,” one person in Paris who has worked with him said.

Another person close to Stellantis said the company’s current woes ultimately stem back to decisions made by Tavares. “When you talk about the management, there is only one and that’s Carlos Tavares,” he said.

>>> US After Hours Summary: Quiet fter hours session; AEHR +10% higher on earnin

After Hours Summary: Quiet fter hours session; AEHR +10% higher on earnings; Healthcare stocks on radar after C.M.S. releases 2025 Medicare Advantage and Part D Star Ratings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: AEHR +10%
Companies trading higher in after hours in reaction to news: TGI +3.2% (exploring potential sale, according to Bloomberg), CLOV +2.3% (C.M.S. releases 2025 Medicare Advantage and Part D Star Ratings), INSG +1.9% (launches 5G Mobile Hotspot for Inseego Ignite Channel Program), ADC +0.9% (increases dividend), ATR +0.5% (authorizes new $500 mln share repurchase program), SNY +0.4% (CD&R nears €15 bln deal for SNY's Consumer Health division, according to Bloomberg), SAND +0.3% (provides Q3 ops update), TEVA +0.2% (to pay $425 mln to resolve kickback allegations, acording to DOJ), CBL +0.2% (completes repurchase of 500K shares from single shareholder), SILV +0.2% (provides Q3 production update), PDM +0.1% (virtually no damage from hurricane), LZB +0.1% (CFO to retire, names new CFO), NWN +0.1% (increases dividend)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: None.
Companies trading lower in after hours in reaction to news: HUM -3.8% (C.M.S. releases 2025 Medicare Advantage and Part D Star Ratings), UNH -0.2% (C.M.S. releases 2025 Medicare Advantage and Part D Star Ratings), REPX -0.1% (increases dividend)

WSJ : How Iran Uses Criminal Gangs in the West to Target Its Enemies

How Iran Uses Criminal Gangs in the West to Target Its Enemies
After setbacks in Lebanon and Gaza, Tehran is finding new ways to go after Israeli interests

Iran and its allies, battered by Israeli attacks and the killing of Hezbollah leader Hassan Nasrallah, are running out of options to strike back without risking a regional war that could set them back even further.

But there is one area where Western security agencies and experts fear Iran will try to hit Israel: by hiring criminal gangs in the West.

Iran has long used local militias to pursue its goals across the Middle East. In recent years, Tehran has exported that model to Europe, allying with drug lords and gangsters to go after Jewish or Israeli targets and other perceived opponents.

A recent wave of suspected Iranian-ordered attacks include a hand grenade thrown at the Israeli Embassy in Stockholm and a Spanish politician shot in the face in broad daylight.

Last week, Danish police arrested two Swedish men ages 16 and 19 and charged them with terrorism in connection with two explosions, likely from hand grenades, near the Israeli Embassy in Copenhagen. Swedish media said the young men were affiliated with a gang leader accused of ordering violent plots in Scandinavia on behalf of Tehran, where he is hiding from arrest warrants.

On Thursday, Swedish police arrested a suspect in connection with a shooting near a facility belonging to the Israeli defense-electronics company Elbit Systems in the city of Gothenburg. The Swedish public broadcaster said the suspect was 12 or 13 years old. Police didn’t say whether the attack was linked to Iran. Swedish intelligence has previously accused Tehran of hiring teenage criminals to conduct violent plots in the country.

As Iran and its allies seek ways to respond to recent Israeli attacks in Lebanon, but with limited options in their region, Europe provides an accessible arena to strike Israeli interests, experts say. Russia, too, has noticed the opportunity. The head of the U.K.’s domestic spy agency on Tuesday said both Russia and Iran were increasingly using low-level criminals to carry out arson and sabotage attacks against dissidents and sow chaos across Europe.

MI5 Director General Ken McCallum said Russia is using criminal networks after its spy network was largely dismantled by the expulsion of 750 diplomats following the Kremlin’s move to launch a full-scale invasion of Ukraine.

Israel’s National Security Council, meanwhile, said in late September that it had identified a sharp increase in efforts to target Israeli interests around the world since Hamas’s attack on Oct. 7 last year.

Covert operations in Europe have increasingly become a tool of asymmetric warfare for hostile actors, said Daniel Byman, senior fellow at the Center for Strategic and International Studies in Washington and an expert on terrorism and insurgencies. While Hezbollah’s military command has been decimated, plots in Europe require few resources.

“It enables you to strike a range of targets that are often undefended. Small groups of individuals can do it without much training and money,” Byman said.

Iran has a history of orchestrating attacks against Jewish and Israeli targets abroad. In April, an Argentine court ruled that Hezbollah, on behalf of Iran, was behind a bombing in 1994 against a Jewish cultural center in Buenos Aires that killed 85 people.

Prosecutors in Bulgaria linked Hezbollah, a U.S.-designated terrorist group, to a 2012 bus bombing there that killed five Israeli tourists and a Bulgarian driver. Two Lebanese nationals were sentenced in absentia to life in prison.

New opportunities are emerging, too, thanks in part to relatively open borders and a rise in organized crime in historically safe countries such as Sweden, the U.K., the Netherlands and Germany.

Early this year, in a quiet corner of Stockholm, a member of a notorious local gang threw a hand grenade into the compound of the Israeli Embassy. Months later, members of a rival gang fired live shots near the same building, leading police to arrest a 14-year-old boy.

The two criminal organizations, called Foxtrot and Rumba, are mortal enemies, fueling a wave of violence rocking Sweden, often using teenagers. But they both take orders from Iran, Israeli and Swedish intelligence have said. The night before the embassy shooting, police had arrested a 15-year-old boy for possession of a semiautomatic weapon while he was heading to the compound.

Foxtrot members were also behind last week’s embassy explosions in Copenhagen, Swedish media reported.

“Iran for years has conducted security-destabilizing activities in Sweden, mainly aimed at the Iranian diaspora,” said Fredrik Hultgren-Friberg, a spokesperson for the Swedish Security Service. “This spring we established that the Iranian regime had been using individuals connected to criminal networks in Sweden to carry out violence” against Israeli targets in Sweden, he said.

The Israeli Embassy in Brussels was also attacked with two grenades in May by criminals recruited by Iran, according to Israel’s spy agency Mossad.

The same month, a Paris court charged a known drug trafficker, on probation from a 10-year murder sentence, with plotting to kill Jews in Germany and France on behalf of Iran.

This alliance between Iran and European criminals can be traced back to decades of network-building in the Middle East, where militias in Iran’s self-described axis of resistance—including Hezbollah—are involved in international criminal networks, smuggling drugs, weapons and other goods to fund and arm their operations.

“The axis of resistance, the way it operates, is very mafia-like,” said Sanam Vakil, director of the Middle East and North Africa program at Chatham House, a think tank in London. “That’s why finding gangs and finding people to run these operations isn’t so difficult for Iran. Relations were primarily economic, and now they have developed into something else.”

The attacks are also an indication of necessity. Iran and Hezbollah don’t have the intelligence means to respond in kind to suspected Israeli assassinations, and Tehran’s missile barrages against Israel, in April and early October, were largely ineffective.

“They don’t have the operational capability, and they don’t have the creativity,” Vakil said about Iran.

Aside from Israeli or Jewish targets, criminals have also attacked other figures who might have rankled Iran.

On a Friday afternoon in March, Pouria Zeraati left his London house as usual to host a prime-time news show on Iran International, a Saudi-backed broadcaster. Zeraati has gained prominence for his reports on antiregime protests in Iran and Tehran’s support for Hamas and for interviewing Israeli Prime Minister Benjamin Netanyahu.

Zeraati was walking to his car when a man approached him and asked for change. As he began to unlock the vehicle, a second man appeared and grabbed him while the first man stabbed him repeatedly in the leg, Zeraati said.

The attackers are believed to be Eastern European criminals who fled the country after the incident, according to British media. British intelligence didn’t dispute that account. Zeraati said the man’s accent was neither native British nor Iranian.

“It was a warning shot,” Zeraati said in an interview from Israel, where he now lives with his wife in what he considers relative safety and where he works on his show. He is still recovering from his injuries.

In Spain, Alejo Vidal-Quadras, a politician who publicly supports the exiled Iranian opposition group the People’s Mojahedin, or MEK, survived an attempt on his life when he was shot in the face in broad daylight late last year. Six people have been arrested in connection with the attempted murder, including the man suspected of pulling the trigger, a French criminal of Tunisian origin.

Plots have spread to the U.S., too. American law enforcement in July arrested a Pakistani national, whom the Justice Department said had close ties to Iran, after he tried to hire an undercover FBI agent posing as a hit man to assassinate a U.S. politician. The plot was “straight out of the Iranian playbook,” FBI Director Christopher Wray said.

American prosecutors last year charged three members of an Eastern European criminal organization they linked to Iran with conspiring to assassinate Masih Alinejad, an Iranian journalist and activist based in Brooklyn. The FBI also issued a warrant for Naji Sharifi Zindashti, a prominent heroin trafficker wanted for allegedly hiring criminals to murder two residents of Maryland who had fled Iran.

“The Islamic Republic of Iran harbors neither the intent nor the plan to engage in assassination or abduction operations, whether in the West or any other country,” said a spokesperson for Iran’s mission to the United Nations. “These fabrications are concoctions of the Zionist regime, the Albania-based Mujahedin-e Khalq terrorist cult,” he said, referring to the MEK, “and certain Western intelligence services—including those of the United States—to divert attention from the atrocities committed by the Israeli regime.”

Some criminals have received safe haven in return for their work.

Rawa Majid, the kingpin of Foxtrot, one of the Swedish gangs behind the Israeli Embassy attacks in Copenhagen and Stockholm, was arrested in Iran last year, according to Swedish media. He is now accused of directing terror plots across Europe at the direction of Tehran, while hiding from an international arrest warrant, according to Israeli intelligence. He couldn’t be reached for comment.

Ramin Yektaparast, a former president of the Hells Angels biker gang in the German city of Mönchengladbach, for years befriended and offered protection to Iranians, including an Instagram influencer who was the son of an Iranian Revolutionary Guard veteran, Yektaparast told The Wall Street Journal in 2019.

When German authorities in 2021 indicted Yektaparast for a gang murder committed years earlier, he had already fled to Iran, where he had family links and was familiar with the language. The following year, from Tehran, Yektaparast orchestrated two plots against synagogues in the German state of North Rhine-Westphalia, according to German authorities, alleging he directed the attacks on behalf of Iran. He couldn’t be reached for comment.

By using people such as Yektaparast, Iran benefits in a similar way to how it uses militias in the Middle East, said Matthew Levitt, senior fellow at the Washington Institute for Near East Policy and expert on Iranian-backed groups and terrorism.

“They want to do things with plausible deniability to avoid retaliation at home,” he said. “That’s the bottom line.”

And it’s increasingly cost effective.

Iran doesn’t even need to build direct contact with gangs. It can now work through middlemen with contacts in the criminal underground, said Manne Gerell, associate professor at Malmö University with expertise in organized crime in Sweden.

“These are project-based hits, and the people who organize them don’t have to have an affiliation with any gang. They can be independent contractors,” he said.

Sometimes young gang members are willing to kill for as little as $1,000, Gerell said, or sometimes for free if it improves their standing in criminal circles.

FT : Germany’s choice

Germany’s choice
Should Europe’s largest economy embrace the future or double down on past successes?

Europe is at a hinge moment, but so is Germany. And it is hard for the EU to go anywhere without its largest economy consenting to go in the same direction. Hard though not impossible, as shown by last week’s imposition of tariffs on Chinese electric vehicle imports, in the face of Berlin’s opposition.

Still, so long as Germany does not know what it wants, the EU will struggle to make any big steps forward. (That’s why my hope lies in smaller coalitions of the willing — see Other readables below.) And Germany’s disorientation is striking. The country’s inability to decide what it would like its future to be is one reason why a government that promised so much renewal when elected three years ago is now widely panned as dysfunctional. The sense of drift must surely also be one reason behind the country’s protracted recession.

Today I report on two events last week that, together, perfectly illustrate the rift in German public and elite opinion about where the country (and Europe) needs to turn, economically but also by extension geopolitically.

As I mentioned last week, I spent a few days at the Berlin Global Dialogue, an impressive gathering of German, European and global business and political leaders. French President Emmanuel Macron attended. So did ministers from the German government and many other countries.

Among the many people I chatted with was UniCredit economist Erik Nielsen, whose latest Sunday note gives a nice — and upbeat — impression of the event. The theme of the conference was to “(re-)establish common ground”, “focus on areas where co-operation is possible — rather than not co-operating at all”, and “bridge [varying local] perspectives”. Nielsen took away a hint of convergence of Franco-German differences. My much less optimistic take is that “bridging differences” is code for a yearning to return to a less geopolitical world — or at least a world where geopolitics does not get in the way of business.

Geopolitics or anything else, really. In addition to worries about losing the Chinese market, my conversations on the sidelines were rife with rebelliousness against the burdens businesses feel are placed on them in the name of decarbonisation and other good causes. Deregulation, simplification, and generally for government authorities (at both national and EU level) to get out of the way, were the leitmotifs. And Berlin practises what it preaches: the government is passing a “growth initiative” package of structural reforms it hopes will raise the long-term growth rate by 0.5 percentage points (though independent economists are less optimistic).

I heard many calls for “technological neutrality”. That is to say: decarbonisation, yes, but don’t favour any particular technology. It is hard not to see this in the context of Germany’s struggle with the shift to electric cars and rearguard action to carve out a future for its internal combustion engine (ICE) manufacturing. I found telling German finance minister Christian Lindner’s suggestion to his Saudi counterpart Mohammed al-Jadaan (available on video here) that cheap Saudi energy could be used to produce synthetic fuels “which could make the transformation [of Germany’s] mobility sector much easier”.

So I left Berlin with the strong impression that much of Germany’s elite has taken fright from the future and is now hunkering down in defence of how the country has always done things. But I heard quite different tones from the other end of Germany, where on the same day as the Berlin Global Dialogue, the European Central Bank’s Isabel Schnabel gave the Walter Eucken lecture at the Eucken Institut in Freiburg, the high temple of German ordoliberalism.

Schnabel’s very good speech was billed as about escaping stagnation in the Eurozone. But read it closely, and the strongest messages seem to me to be directed at Germany, warning the country against the resistance to change I detected in Berlin. (Schnabel has form on knocking down German shibboleths in symbolic locations: she once gave a spirited defence of the ECB in Karlsruhe, the seat of the German Constitutional Court, whose dislike for the central bank is well known.) Below I reproduce some of her charts.

First, from being the EU’s economic locomotive Germany has become a drag on European growth. One of Schnabel’s charts displays the post-pandemic recovery in the Eurozone as a whole next to the performance of the Eurozone excluding Germany. The result is uncomfortable for the bloc’s biggest economy: it is now clearly part of the problem, not the solution.


This is not just because Germany is specialised in industry, which understandably is facing the double headwinds of high interest rates and high energy prices. Even looking only at industrial production, Germany’s post-2021 performance is among the worst in the Eurozone.


In capital goods specifically, Germany produces less today than at the end of 2021, unlike France, Italy, Spain and the Netherlands, Schnabel also shows. (She suggests this heterogeneity means that her and her colleagues’ tight monetary policy cannot be faulted for industrial weakness. I’m unpersuaded: high central bank interest rates may not explain that large variation in industrial performance across euro countries — but they have surely contributed to the aggregate industrial contraction in the Eurozone, which is significant if not as severe as that in Germany.)

Instead, it turns out that the German export-driven industrial boom in the first two decades of this century was always more contingent than its promoters admit. We all know that as China has gained global market share, rich countries have seen theirs shrink. But Schnabel points out that Europe’s exports (dominated by Germany) would have performed much worse had it not been particularly exposed to the strongest-growing globally traded markets and sectors:


In other words, the export boom reflected a fortunate reliance on a propitious composition of exporting sectors and trading partners. Had Europe’s industrial base and trading relationships been the same as the US’s, things would have looked much worse — as indeed they have done since 2019:


If there is another way to politely say “your growth model is dead, please move on rather than try to revive a corpse”, I cannot think of one. Schnabel’s coup de grâce is to draw attention to Chinese investment in car shipment capacity — which is “projected to raise the number of electric vehicles available for exports by 1.7 million annually by 2026 . . . To put this in perspective, the total number of electric vehicles sold across the EU in 2023 was 2.5 million.”

Time is running out, then, to complete the massive shift to EVs in Europe’s own capacity. As it turns out, there are some innovations the EU is world-beating at — those in green tech. Here is the last Schnabel chart I want to share:


In terms of global export market value share, Schnabel’s speech documents that the Eurozone is actually still well ahead of China in electric and hybrid vehicles (30 against 16 per cent), and has gained ground (from 18 per cent in 2017) even as it has fallen back in ICE cars (from 30 to 24 per cent).

Two visions of where to go, then. One, willing to make a clean break with the past — and risk a break with some traditional partners; the other, hoping to salvage and restore a long-struggling economic model including by isolating business from geopolitics. I personally have little faith in the realism of the second strategy. But either way, much is going to depend on how Germany makes up its mind.

FT : EU to delay new electronic border checks

EU to delay new electronic border checks
Biometric system will no longer launch next month after warnings of travel delays

The EU will delay the start of its new electronic border system, said two people briefed on the discussions, after Germany, France and the Netherlands warned that the bloc’s computer systems were not ready.

The three countries had asked the European Commission to rethink plans to launch the “Entry/Exit System” in a month’s time because of fears that travel would be disrupted and the computer systems overwhelmed.

Germany, France and the Netherlands account for 40 per cent of passenger traffic affected by the new system, and the commission could not proceed with its plans — which had already been delayed several times — without their consent.

At a meeting of EU home affairs ministers on Thursday, home affairs commissioner Ylva Johansson told ministers that the start date of November 10 was not feasible, and that the commission would consider a later date, according to two officials familiar with the situation.

The commission also proposed to introduce the system in phases, rather than all at once, said four officials briefed on the talks.

“The commission asked the [council of ministers] to agree to a phased approach. France, Germany and the Netherlands agreed, and the [Hungarian] EU presidency indicated that would be a good way forward. On the basis of that, the commission can now continue to work internally on a solution,” one EU diplomat said.

Airports and airlines have also warned of queues at immigration, as the new system will require non-EU citizens to register their personal details, including fingerprints and facial images, when they first visit the bloc.

The officials said the commission would have to propose a legal change to make the phased-in approach possible, as the current legislation foresees introducing the new biometric border checks everywhere at once.

A targeted change to the legislation would require the EU Council and the European parliament to agree, which could take months. Another option could be for the commission to issue a so-called implementing act to facilitate a gradual start, the officials said.

The legal steps and potential new start date will be discussed next week at a meeting of the managing board of EU-Lisa, the EU agency charged with implementing the new system, the officials said.

Two officials said the delay to the November date meant it was possible that the new system could begin next year.

Germany’s interior ministry last month said the central computer system of EU-Lisa “still lacks the necessary stability and functionality” and therefore the required tests could not be carried out.

The European Commission did not immediately respond to a request for comment.