Stellantis faces brands dilemma amid CEO search. Plus we are not sure how many of the automaker's brands have a viable future. Brands ranging from bestsellers like Jeep and Peugeot to the struggling names like DS, Lancia, Maserati and Alfa Romeo, the next leader will need a clear strategy for streamlining operations and driving profitability and sell off brands that are not profitable.
Stellantis is the result of the 2021 merger of Fiat Chrysler and Peugeot owner PSA, which creating the world’s fourth-largest automaker. However, the company’s broad brand mix adds complexity, limiting marketing efficiency and making resource allocation difficult. Pushing the green electric initiative has lead to lost sales.
Even worse news, with Stellantis reporting a steep 70% decline in the full year 2024 net profit, falling to 5.5 billion euros ($5.77 billion) from 18.6 billion euros ($19.5 billion) in 2023. Despite the sharp drop, the company expressed confidence in a turnaround, projecting a return to revenue growth and positive cash flow in 2025. Stellantis attributed its weak performance to ongoing industry challenges, including declining demand for new cars, underperformance in North America, and struggles in the Chinese market.
The company is also in the midst of a leadership transition following the sudden departure of CEO Carlos Tavares late last year. Until a successor is named—expected in the first half of 2025—Chairman John Elkann is overseeing operations alongside an interim executive committee.
While the company is bracing for continued market uncertainty, it is banking on strategic investments and operational improvements to drive a recovery in the year ahead. I believe it’s based on products, reliability and invocation. Positive changes really mean more than new leadership, it requires a full team effort and employees that know what customers want.
The upcoming CEO will have to balance brand heritage with financial realities. While Fiat remains strong in emerging markets and Jeep maintains a solid foothold in the U.S., Stellantis’ ability to simplify and strengthen its brand strategy will be critical to its future success.
The new CEO will need to have "cultural dexterity" because of the automaker's worldwide operations, while also bringing a strong understanding of capital and technology.
If the US Federal EV mandate truly goes away, completely, and all legal appeals have been exhausted, then all automotive stocks for companies making gasoline cars will see a dramatic re-valuation.
In other words, profitability going forward goes up dramatically and their stock market valuation will increase dramatically along with it without an EV mandate. The market cares about going-forward profitability.
Rumors have been swirling that could help Stellantis come from the return on Tim Kuniskis, their performance guru, coming back that we will see the V8 returning to Dodge's performance vehicles. This will spur interest from car enthusiasts and being more attention and sales to the brands. Some even suggesting the "Barracuda" name will return on a new, smaller, twin-turbocharged V8 coupe with all-wheel drive. If the brand lets Kuniskis be the master of the brand and let him run free he'll bring Dodge, Ram, and Jeep brands back strong.
Using the Charger name and other know brands is huge. If Dodge can bring back a Challenger replacement, call it the Barracuda and use the Cuda name for performance versions, like they have in the past; all with a V8 version that is smaller, lighter, and more sophisticated than its predecessors they will sell like hotcakes.
We will be watching and reporting all brands and their successes and failures.
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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.
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