Five years after the transatlantic automaker Stellantis was established through a merger, the business was not significantly worked out as investors expected.
The US shares of the firm formed as a result of a $52 billion merger of Italian American automaker Fiat Chrysler and France-based Groupe PSA on January 16, 2021, which fell approximately 43 percent over the last five years. Italian-traded shares are slightly below, with 40 percent down as well.
Shares of the automaker have been mostly black since the combined company began trading on the New York Stock Exchange on January 19, 2021, days after the merger was finalized, until Stellantis announced distressing financial performance that year during its cost-cutting endeavors to enable it to make higher profits and meet its multibillion-dollar target of entering into electric vehicles.
Most of such plans are being changed or canceled with the new Stellantis CEO, Antonio Filosa, who succeeded Carlos Tavares last summer. Tavares, who had been an automotive executive for a long time, was much credited with the formation of the company and suddenly quit Stellantis in December 2024.
Filosa is implementing a sales turnaround strategy for the automaker and specifically on its Jeep and Ram brands, reclaiming the lost U.S. market share after several years of declining sales.
He informed reporters on Wednesday during the Detroit Auto Show, “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 did not exclude the prospect of regionally refocusing or consolidating the huge range of brands that the company includes, which also feature the Italian nameplates Fiat and Alfa Romeo, which have not been successful domestically.
He stated that he thinks the company should “stay together” after some speculation had it would be better to sell some assets or brands, including that suggested by Tavares.
Filosa reported that the next step in the plans of the company will be done when the company holds a meeting this month, of this year, where more than 200 company executives will take part in an upcoming capital markets day, and also in the company culture and 2026 execution.
Since the departure of Tavares, investors have been keen to listen to another strategy of Stellantis. He departed in the wake of unstable sales and financial performances as the company struggled to record 10 percent or more profit margins and increase net revenues twofold under his “Dare Forward 2030” business plan.
However, the U.S. shares of Stellantis since Filosa began as CEO on June 23 are up 2 percent. They closed Friday at $9.60 per share, down 4.2 percent.
The company would not comment on the errors made by the company in the past, but the company officials told CNBC earlier that Tavares was into the business, reducing its expenditure and profits, which served the business badly, and the products, employees, and relationship with suppliers, unions, and dealers.
Filosa has spent most of his time trying to repair those bonds, especially with the company’s distraught U.S. franchised retailers. He has also endorsed radical changes to the product strategies of the company, such as lowering prices and refocusing the products on non-electrified vehicles.
He said with regard about his tenure as the CEO, “In the six months, I see the changes that we will make we need to make to create the bright future that we need.”
