Stellantis faces ongoing challenges

Stellantis, once the most profitable automotive group, faced a major setback in late 2024. This led to the departure of CEO Carlos Tavares and ongoing management issues, forcing the company to undergo a difficult restructuring.

New leadership seeks to stabilize the company

Two years after the turmoil, Antonio Filosa, Stellantis’s new leader, is trying to restore confidence. He claims the company’s new strategies are working, though progress remains slow and uncertain.

European sales show some growth

In Europe, vehicle deliveries have risen by 10 percent, and electric car sales have surged by 65 percent. Models based on the "Smart Car" platform, like the Citroën ë-C3, are driving this growth. However, profitability remains a challenge.

Profitability struggles continue

Despite the sales increase, Stellantis’s adjusted operating margin has fallen to -2.2 percent, compared to +1.2 percent a year earlier. This decline is partly due to discounts used to clear inventory, and the company faces issues like delayed launches and software problems.

Launch schedule lacks momentum

The European launch calendar shows little sign of recovery, despite Stellantis having 14 brands. However, the Paris Motor Show brought some renewed interest with several appealing concept vehicles. Whether these concepts will translate into real products remains to be seen.

Future depends on new technologies

Antonio Filosa is counting on the upcoming STLA One platform and the widespread use of LFP battery chemistry by 2027-2028 to boost profitability. However, current models like the Lancia Gamma and the upcoming Fiat Grizzly may not be enough to drive sales.

Reliance on Chinese models raises concerns

Stellantis has included electric vehicles from Chinese manufacturer Leapmotor in its European lineup, contributing to a 93 percent growth in electric sales. While this has helped in presentations, it may weaken the competitiveness of Stellantis's own brands.

Hope remains but recovery is slow

Despite ongoing challenges, the Paris Motor Show showed that Stellantis still has creative energy and passion. Management changes seem to be having some effect, and the company is still targeting its financial goals. However, a full recovery in Europe will take time.