Stellantis's Troubled First Five Years
Stellantis, the automaker formed from the merger of Fiat Chrysler and Groupe PSA in January 2021, has experienced a significant decline in its market value, losing almost half its worth since its inception. The company, intended to be a global automotive powerhouse, has seen its U.S. shares drop by 43%, while its Italian shares have fallen by 40%. Upon its initial listing on the New York Stock Exchange on January 19, 2021, the stock showed promise, rallying to a 74% increase by March 2024. However, as of January 19, 2025, the market performance has taken a sharp downturn.
New CEO Addresses Retailer Challenges and Strategic Realignments
Carlos Tavares, the former CEO who orchestrated the Stellantis merger, departed abruptly in December 2024. His tenure was characterized by aggressive cost-cutting measures and a focus on profit margins, which ultimately proved detrimental to Stellantis's products, workforce, suppliers, and dealership network.
Antonio Filosa assumed the role of CEO on June 23 and has since been implementing changes to rectify the situation. His strategy involves discontinuing several costly initiatives, reducing vehicle prices, and shifting the company's focus away from an exclusive emphasis on electric vehicles. A key priority is mending strained relationships with U.S. retailers.
During an interview at the Detroit Auto Show, Filosa stated, "The strategy that we have in front of us is a strong one and will lead us to growth if we execute well. So, I believe it’s a year of execution."
Filosa's current efforts are concentrated on revitalizing the Jeep and Ram brands, which have faced declining sales in the U.S. market. He has also convened a meeting with over 200 company executives to discuss company culture, 2026 objectives, and upcoming announcements for capital markets day.
While the possibility of divesting certain brands was previously considered, even by Tavares, Filosa has expressed a commitment to keeping the company intact. He remarked, "I believe the company should stay together."
However, Filosa has not ruled out restructuring or refocusing specific business segments. Brands like Fiat and Alfa Romeo have underperformed in the U.S., and Filosa has indicated that potential changes for these brands are under consideration.
Investor Uncertainty Persists Following Tavares' Departure
Investors are still awaiting a comprehensive strategic plan following Carlos Tavares' exit. His previous "Dare Forward 2030" strategy aimed for 10% profit margins and a doubling of net revenue, targets that were not achieved.
Since Filosa took the helm, Stellantis's U.S. shares have seen a modest increase of just 2%. The stock closed on Friday at $9.60, marking a 4.2% decrease. While Filosa has not directly criticized Tavares, he has made it evident that a strategic reset is necessary for the company.
Filosa commented on the situation, stating, "In the six months, I see the changes that we will make we need to make to create the bright future that we need."