Stellantis stock off 43% as Jeep maker turns five, executes turnaround
Stellantis North America COO and Jeep CEO Antonio Filosa speaks at the Stellantis press conference at the Automobility LA 2024 auto show at the Los Angeles Convention Center on November 21, 2024 in Los Angeles, California.
Etienne Laurent | AFP | Getty Images
DETROIT — Five years after the transatlantic automaker Stellantis Although formed through a merger, the business did not pan out as investors had hoped.
US shares of the company, which was formed by the $52 billion merger of Italian American automaker Fiat Chrysler and France-based Groupe PSA on January 16, 2021, have fallen nearly 43% over the past five years. Shares listed in Italy are also down nearly 40%.
Since the merged company’s stock debuted on the New York Stock Exchange on Jan. 19, 2021, just days after the merger was completed, the automaker’s shares were largely at a loss — a rally as high as 74% in March 2024 — until Stellantis reported troubled financial results that year due to cost-cutting efforts aimed at supporting higher profits and billions of dollars in investment in electric vehicles.
Many of those plans are being modified or eliminated under new Stellantis CEO Antonio Filosa, who replaced Carlos Tavares last summer. Tavares, a long-time automotive executive, played a major role in founding the company but abruptly left Stellantis in December 2024.
Stellantis shares are traded in the US and Italy.
Filosa is executing a sales turnaround plan for the automaker, focusing specifically on helping its Jeep and Ram brands regain U.S. market share after years of sales declines.
“The strategy in front of us is a strong one and if we execute it well, it will lead us to growth,” he told reporters at the Detroit Auto Show on Wednesday. “So I believe this is an execution year.”
Filosa did not rule out the possibility of regionally refocusing or narrowing the company’s large brand portfolio, which includes Italian brands Fiat and Alfa Romeo that have not performed well domestically.
After some speculation, he said he believed the company should “hold together.” Including Tavaresthat it would be better to sell assets or brands.
Filosa said that the next step in the company’s plans will be taken at a meeting to be held this month with the participation of more than 200 company executives, and that this meeting will focus on the upcoming capital markets day, company culture and 2026 implementation.
PSA CEO Carlos Tavares and FCA CEO Mike Manley shake hands after signing a merger agreement that will lead to the creation of the world’s fourth-largest global automaker in terms of annual sales (8.7 million vehicles).
FCA
Investors are looking forward to hearing about Stellantis’ new strategy following Tavares’ departure. He left due to troubled sales and financial results as the company struggled to achieve profit margins of 10% or more and double net revenues under its “Dare Forward 2030” business plan.
Stellantis’ U.S. shares have risen 2% since Filosa took office as CEO on June 23. They closed Friday at $9.60 per share, down 4.2%.
Filosa this week declined to discuss the company’s past mistakes, but company executives have previously told CNBC that Tavares’ commitment to cost-cutting and profits has harmed the business as well as the company’s products, employees and relationships with suppliers, unions and dealers.
Filosa spent much of his time trying to repair ties, particularly with the company’s distraught U.S. franchise retailers. He also confirmed sweeping changes to the company’s product plans, including lowering prices and reprioritizing products away from electric vehicles.
“In six months, I see the changes we need to make to create the bright future we need,” he said of his tenure as CEO so far.
