MILAN, Dec 4 (Reuters) - Stellantis ( STLA ) is
confident that an expected improvement in performance could
allow the automaker to pay a dividend in 2025, finance chief
Doug Ostermann said on Wednesday, as it looks beyond the Carlos
Tavares era.
In the first public remarks by a Stellantis ( STLA ) top executive
since former CEO Tavares abruptly resigned on Sunday, Ostermann
said the automaker, which in September issued a shock profit
warning on its 2024 results, had the ability to generate cash
and perform well in 2025.
"I feel strongly that we will have a dividend. We'll have a
good discussion, I think, also around buybacks," Ostermann said
at a Goldman Sachs conference.
"Given where our stock is at right now, I think (a buyback)
is pretty attractive for us," he said, but added that a decision
would be taken only once final numbers for this year are
approved.
Bloated U.S. inventories and falling U.S. and European
market shares were the main reasons for the profit warning, but
Ostermann said he saw good progress in fixing such issues.
"That should give us a lot of confidence to be able to
launch into 2025 in a much more healthy way," said Ostermann,
who replaced Natalie Knight as CFO in October, as part of a
post-profit warning top management reshuffle.
He said divergences between Carlos Tavares and Stellantis' ( STLA )
board, which eventually led the CEO to quit, included priorities
for the 15 months left before Tavares' term was set to expire.
"Those related to kind of tactical issues on how to run the
business over that short-term time period, and what actions
should be taken in regard to short-term metrics versus
longer-term benefit of the company," he said.
Disagreements also emerged on relations Stellantis ( STLA ) was
having with dealers, suppliers, unions and governments, the CFO
said.
"Clearly we need to build back trust."
Ostermann, however, saw no major changes to Stellantis' ( STLA )
long-term strategy, including its choice to develop multi-energy
platforms, that can support vehicles with different kind of
propulsion.
Ostermann, who previously headed Stellantis' ( STLA ) operations in
China, is now seen as a potential candidate to succeed Tavares
as CEO.
An American national, he has served in different positions
in Stellantis ( STLA ) and formerly at Fiat Chrysler, where he joined in
2016 as group treasurer.
He has played a key role in striking Stellantis' ( STLA ) current
partnership with Chinese automaker Leapmotor.