NEWSCENTRAL notes that the merger of giants Fiat Chrysler and Groupe PSA in 2021 was expected to be a major step for the automotive industry, and Stellantis, as the combined company, was positioned as a new leader in the global market. However, five years after the deal, the automaker’s shares have fallen by 43%, casting doubt on the success of its strategy and its implementation in the face of fierce competition and rapidly changing markets.
Starting off with a successful launch in 2021, when Stellantis’ shares rose by 74%, the company faced challenges by 2024. The main issue stemmed from high costs associated with the transition to electric vehicles, which proved to be expensive for the company. These expenses and modernization plans led to deteriorating financial results, and raised concerns among investors, who began to reassess their expectations of the company.
A significant turning point came with the appointment of Antonio Filosa as CEO following the departure of Carlos Tavares. The new leader stated that 2025 would be a pivotal year for the company and emphasized focusing on a strategy aimed at steering Stellantis out of the crisis. Filosa also did not rule out the possibility of streamlining the company’s brands, including selling off less profitable ones such as Fiat and Alfa Romeo, which would make the company more focused on profitable segments.
Analysts point out that Stellantis’ greatest challenge remains the need to adjust its strategy in the face of growing competition in the electric vehicle market. Freddy Miller, Senior Analyst at NEWSCENTRAL, emphasizes that the company must accelerate its transition to electric powertrains, as this is directly tied to its ability to maintain leadership. “If Stellantis fails to promptly adapt its strategy, it could jeopardize its future in key markets,” noted the expert.
One of the key factors for the company remains the successful integration of electric vehicles into the mass market. Filosa’s plans are focused on improving product quality and reducing costs, but to achieve these goals, not only the production processes but also the strategy for interacting with customers and dealers need to be reconsidered. We at NEWSCENTRAL believe that a revamped approach to pricing, improving product quality, and more aggressive promotion of electric vehicles are essential elements for restoring investor confidence.
Stellantis shares are currently priced at $9.60, which is 4.2% lower than in previous months. Despite increased sales in certain regions, such as Europe and Asia, in the U.S., where brands like Jeep and Ram have lost popularity, the company continues to face difficulties. At the same time, forecasts for automakers actively working on electric vehicles remain positive.
We at NEWSCENTRAL forecast that in the coming years, Stellantis could emerge from the crisis if the company is ready to embrace innovation and adapt to the rapid shift to new automotive technologies. This will require not only updating the product lineup but also revisiting internal processes and relationships with partners.
We at NEWS CENTRAL see that in times of economic instability and the transition to electric vehicles, Stellantis has a chance to strengthen its market position. However, success will depend on the company’s ability to quickly adapt and respond to new challenges. Otherwise, the company may find itself among those who failed to adapt in time and could not withstand the competition.