Stellantis NV (STLA.US) CEO Antonio Filosa is overhauling the automaker’s strategy to prioritize sales growth over profit margins, marking a sharp departure from his predecessor’s high-margin focus. The move aims to reclaim lost market share in North America and Europe through fleet sales expansion and budget-friendly models, according to four sources familiar with the matter.
Filosa, who took the helm in June, launched what insiders term an "emergency room" restructuring to address the fallout from ex-CEO Carlos Tavares’ cost-cutting and price-hiking approach, which alienated customers. By late 2023, Stellantis’ U.S. sales—a key profit driver—plunged 15% amid a 2.2% industry-wide gain, leaving dealers with bloated inventories.
The new CEO’s immediate goal is to beat analysts’ conservative 2024 forecasts, which at best project flat year-on-year performance. Early signs are promising: Q3 North American sales rose 6%, snapping an eight-quarter slump. The strategy seeks to rebuild credibility with consumers, investors, and dealers while stabilizing factory operations.
Stellantis faces headwinds from U.S. tariffs, costly EV transitions, and Chinese competition. A company spokesperson confirmed Filosa is "accelerating corrective actions" for past missteps. Three sources noted his plan has backing from major investors, including Exor (Agnelli family), the Peugeot family, and the French government.
Key tactics include reviving low-margin U.S. fleet sales—a volume booster for rental agencies and governments—while doubling down on profitable Jeep and Ram models. Filosa is also evaluating the viability of Stellantis’ 14 brands (e.g., Fiat, Peugeot, Maserati), scaling back Tavares’ aggressive EV targets, and reintroducing gas-powered models like the Jeep Cherokee and Hemi V8 engines.
Edmunds data shows Stellantis’ U.S. share has cratered to under 8% (from 12.5% in 2020), with Jeep losing ground to rivals like Ford’s Bronco. Filosa’s "back-to-basics" approach axes autonomous/hydrogen investments and delays Tavares’ 2030 EU full-EV pledge. The CEO vows "sustainable growth" via sub-$30k models (e.g., Dodge) to regain traction.
Management reshuffles and hiring sprees aim to fill talent gaps. While investors accept that margin recovery may take years—with adjusted operating margins projected to dip to low single-digits in 2024 (vs. 13% in 2022-23)—patience isn’t infinite. One stakeholder warned: "Volume gains alone won’t fund future investments."
Brand consolidation looms as a critical challenge. In Europe, overlapping marques like Peugeot-Opel and niche players (DS, Lancia) dilute efforts. Oliver Wyman’s Marco Santino noted, "Here, 1+1 doesn’t equal 2." Filosa’s brand review may lead to cuts, especially in saturated markets.
Dealer Harry Criswell (Criswell Automotive) acknowledged "real short-term progress," though Stellantis remains far from its goals. Strong year-end U.S. sales could buy Filosa time to prove the automaker isn’t in structural decline.
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