Stellantis stock off 43% as Jeep maker turns five, executes turnaround

Stellantis’ Five-Year Struggle: Can New CEO Antonio Filosa Turn the Company Around?

It’s been five years since the formation of Stellantis, a transatlantic automaker created through the merger of Fiat Chrysler and Groupe PSA. However, the company’s performance hasn’t quite lived up to investors’ expectations. Despite being the world’s fourth-largest global automaker in terms of annual sales, Stellantis’ US shares have plummeted by roughly 43% over the past five years, while Italian-listed shares have also taken a hit, dropping around 40%.

The company’s struggles began to surface in 2024, when it reported troubling financial results amidst cost-cutting efforts aimed at supporting higher profits and its multibillion-dollar push into electric vehicles. The news led to a significant decline in share prices, which had previously seen a high of 74% in March 2024. The decline prompted a change in leadership, with Antonio Filosa taking over as CEO in June 2023, succeeding Carlos Tavares, who had been instrumental in forming the company.

A New Strategy for Growth

Filosa has been working to execute a sales turnaround plan, focusing on the company’s Jeep and Ram brands, which have experienced years-long sales declines. He believes that the strategy in place is strong and will lead to growth if executed well. Filosa has also been open to refocusing or shrinking the company’s vast portfolio of brands, which includes Italian nameplates Fiat and Alfa Romeo, which have struggled to perform domestically.

During the Detroit Auto Show, Filosa expressed his commitment to keeping the company together, despite speculation about selling off assets or brands. He emphasized the importance of staying focused on the company’s goals and working together to achieve them. The next step in the company’s plans will be a meeting with over 200 executives to discuss the upcoming capital markets day, company culture, and 2026 execution.

A Shift in Approach

Under Filosa’s leadership, Stellantis is shifting its approach, moving away from Tavares’ focus on cost reductions and profits. The company is now prioritizing its relationships with suppliers, unions, and dealers, as well as its product plans. Filosa has approved drastic changes, including reducing prices and reprioritizing products away from electrified vehicles. While it’s still early days, US shares of Stellantis have seen a 2% increase since Filosa took over as CEO.

As Filosa works to repair the company’s bonds with its US franchised retailers and implement changes to its product plans, investors are eagerly awaiting the company’s new strategy. With a focus on growth, execution, and relationships, Stellantis may finally be on the path to turning its fortunes around. Only time will tell if Filosa’s approach will be enough to restore the company to its former glory, but for now, investors are watching with bated breath.