Stellantis shares stay under pressure as CEO pushes turnaround plan

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Stellantis under pressure: turnaround plan

Highlights

Stellantis outlines a turnaround roadmap at its investor day after posting a 22.3 billion euro ($26.3 billion) net loss last year.
Stellantis shares remain down nearly 30% since Filosa's CEO nomination, as investors doubt margin improvement amid AI disruption, Chinese rivals, and restructuring costs.
Filosa launches the Value Creation Program for global cost cuts and seeks growth outside the U.S. via deals with Leapmotor and Dongfeng Group, with 2026 targets for mid-single digit revenue growth.

Investor day puts turnaround strategy in focus

As reported by CNBC, Stellantis is using its capital markets day near Detroit to outline what Filosa calls the next phase of the company’s strategy, with clearer priorities, targets and an execution road map.

The presentation is expected to center on regional brand strengths, including Jeep and Ram in the U.S. and Fiat and Peugeot in Europe. Executives are also expected to explain how the group plans to reduce costs and move back toward profitability after posting a net loss of 22.3 billion euros, or $26.3 billion, last year.

Filosa says partnerships will be important to growth outside the U.S., pointing to recently announced agreements with Chinese automakers Leapmotor and Dongfeng Group. He also has not provided detailed guidance for 2026 beyond targeting mid-single digit growth in net revenues, low-single digit adjusted operating income margins and improved industrial free cash flow.

Margin doubts and market challenges persist

Investors remain cautious as Stellantis stock is down nearly 30% since Filosa is named CEO and about 21% since he officially starts in June. The company is also dealing with pressure from artificial intelligence-related disruption, rising Chinese competition and U.S. tariffs, while continuing to address its own operational issues.

In recent years, Stellantis loses market share, faces strained relationships with suppliers and dealers, and scales back parts of its earlier electric vehicle strategy. Last year’s results also include a 22 billion euro restructuring away from all-electric vehicles, underscoring the scale of the reset now under way.

BofA Securities analyst Horst Schneider says strategic announcements alone are unlikely to support the stock without a credible path to structurally higher margins and stronger cash generation, and last week he downgrades the shares to underperform. Even so, analyst ratings compiled by FactSet still show the stock as overweight ahead of the investor event.

Filosa has reshuffled senior management, emphasized sales growth and launched the Value Creation Program, a global cost-cutting effort focused mainly on North America and Europe. Stellantis' 14 brands are also likely to feature prominently, including expansion of the profitable SRT performance line and possible new products for Chrysler.

Our earlier coverage of the oil-price shock tied to the Iran war looked at how higher fuel costs were accelerating a shift toward electric vehicles across Europe. We noted that EV registrations and buyer inquiries jumped sharply, giving automakers an unexpected demand tailwind even after recent EV-related writedowns and strategy resets across the sector.

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