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Stellantis confident on 2025 dividend, will discuss buybacks, CFO says
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Stellantis confident on 2025 dividend, will discuss buybacks, CFO says
Dec 4, 2024 8:03 AM

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.

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