Latest news with #AntonioFilosa
Yahoo
a day ago
- Automotive
- Yahoo
Struggling Stellantis Picks Insider to Steer Turnaround Effort
Stellantis has brought new meaning to car trouble, and now it's hoping a shakeup at the top will help it steer clear of a fiscal dead end. The multinational automaking giant — one of Detroit's Big Three by virtue of its Chrysler ownership — announced Wednesday that Americas COO Antonio Filosa will soon sit in the driver's seat as its chief executive officer. He'll be called upon to maneuver out of a veritable traffic jam of issues, including his predecessor's strategic blunders, the looming tariff war, and a challenging global auto market. READ ALSO: E.l.f. Soars After $1 Billion Pow(d)er Move to buy Hailey Bieber's Rhode and Omada Health Preps to Go Public as IPO Market Revives When France's Groupe PSA and American-Italian Fiat Chrysler merged to form Stellantis in 2021, it brought Chrysler, Dodge, Jeep, Fiat, Maserati, Alfa Romeo, and more under one roof. The new automaking behemoth promised billions in savings through synergies and collaboration on emerging technologies, such as electric vehicles. And, for a minute, it delivered. Under its first CEO, Carlos Tavares, the new group achieved a record $20 billion in net profit in 2023, an 11% year-over-year increase, and a record $203 billion in net revenue. And then, faster than a Maserati MC20, his strategy went south. Under Tavares, Stellantis hiked prices during the pandemic like most automakers — roughly 50% from 2019 to 2024 in its case, compared with 23% inflation. But then, unlike others, it refused to lower them. Customers balked at Jeeps that cost over $100,000, and inventory piled up, which forced Stellantis to sell off 100,000 units at a heavy discount to clear the backlog. There were other bad signs, namely layoffs and idled plants, and Stellantis' US dealers grew furious: Their council blasted the company's 'reckless short-term decision-making' in an open letter last September. Other critics (car-beraters?) piled up, including the United Auto Workers, who threatened to strike. Tavares abruptly resigned in December after several quarters marked by flailing performance. All told, Stellantis reported a 70% drop in net profits in 2024 to $5.7 billion. At the same time, its US sales plummeted 15%, and its US market share, which had declined roughly 3 percentage points over three years to 8%, fell into fifth place behind Honda. The first quarter of this year brought a 14% year-over-year revenue slide and North American shipments falling 20%. Enter Filosa, who will have to tackle all this and a geopolitical headache: Earlier this year, Stellantis pledged to invest more than $5 billion in the US, including the reopening of an Illinois plant, in an effort to court President Trump. But its international footprint, which includes facilities in Mexico and Canada in addition to Europe, means it is among the automakers most exposed to a trade war. Morgan Stanley analysts said earlier this year that Stellantis and Porsche had the highest US exposures, with about 25% of their unit sales potentially impacted, while Fitch estimates that close to 40% of the company's US sales involve vehicles manufactured abroad. Order Up: While Stellantis is undoubtedly facing pressure from tariffs on car imports, which Trump set at 25%, potentially good news arrived Wednesday. A federal court blocked the president's plan to impose 'reciprocal' tariffs on dozens of countries, which could have led to even higher duties. Trump, for example, recently threatened a 50% tariff for the EU, where much of Stellantis' operations are based. The ruling does not, however, impact Trump's auto tariffs, levied using a national security exemption. Moreover, Goldman Sachs chief US political economist Alec Phillips wrote, following the ruling, that the bank expects the administration 'will find other ways to impose tariffs' such as broadening sectoral tariffs under Section 232 or launching Section 301 investigations on US trading partners, paving the way for tariffs to follow. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Automotive
- Forbes
Stellantis CEO Filosa To-Do List Topped By Profitability Restoration
New Stellantis CEO Antonio Filosa's check list includes restoring profitability, negotiating his way around the U.S. tariff upheaval, facing down the electric vehicle revolution, and then figuring out what to do with all those brands. Stellantis's operating profit margin in 2024 was 5.5%, down sharply from 2023's 12.8%. Stellantis had said before the Trump tariffs problems that it expects little improvement in 2025. Last year, industrial cash flow was a negative €6 billion ($6.8 billion) compared with 2023's positive €12.9 billion ($14.6 billion). The merger between Fiat Chrysler and France's Groupe PSA in 2021 was named Stellantis and included 14 brands. Since then a joint venture with LeapMotor of China has been added. Former CEO Carlos Tavares orchestrated the merger, but shocked shareholders by quitting in December, about a year before the end of his contract. Tavares had been lauded as a financial genius as he welded together many brands which quickly became hugely profitable, despite being mainly mass-market ventures. Overlapping technologies were dropped and economies of scale exploited. One of the brands, Opel and its British Vauxhall affiliate, had been a chronic loss maker when owned by General Motors. Many of the other European brands including Citroen, Peugeot, Fiat and Lancia competed against other in the mass market. DS, Alfa Romeo and Abarth sit in the wannabe premium sector. Dodge, Ram, Jeep and Chrysler were in the U.S. Storied Italian sportscar maker Maserati sits atop of the list. Tavares had said that because of the apparent overlapping of many of the brands, they would be given 10 years to justify their existence. That expires in 2031, but pressure is likely to amount quickly for them to prove their worth. Profitability of the various brands was propelled to unprecedented highs by post-covid pandemic supply-constraints. But Tavares's credibility was undermined by the collapse of profitability in North America. U.S. brands were particularly hard hit when these unusual conditions expired. Automotive News columnist Jamie Butters said Tavares become 'profoundly' unpopular in his last year. 'Pressure on suppliers to bear the costs of electrification led to court battles and missed shipments. Missteps in the U.S. market prompted dealers to call for his resignation. The inability to justify investing in the Belvidere, Ill., plant outraged the UAW, which had counted that plant's revival as a major win from Shawn Fain's historic 2023 contract negotiations. Salaried employees weren't happy either, fielding multiple rounds of buyout offers. So pretty much every stakeholder group was against him,' Butters said. Jeep Cherokee SUV getty 'After that Filosa (a 25-year company veteran) looks pretty good,' Butters said. There had been speculation that Stellantis would recruit from another company or even another industry. After all the late, great Sergio Marchionne was recruited from outside the automotive industry. Italian luxury sports car maker Ferrari, spun off from Stellantis component Fiat-Chrysler in 2016, reached outside to appoint Benedetto Vigna. 'The decision by John Elkann (provisional Stellantis CEO after Tavares left) and the Ferrari board in 2021 to appoint Benedetto Vigna, who had been running STMicro's sensors division, as Ferrari CEO has turned out to be inspired, and Vigna has since driven (Ferrari) to ever greater heights,' Bernstein Research said in a report. 'Antonio Filosa also brings a deep understanding of the U.S. market, something which the group's dealer body persistently accused Carlos Tavares of ignoring its legitimate concerns,' Bernstein Research said. In Europe the obvious weakling brands are Lancia, Alfa Romeo, and DS. Analysts say at least 10 brands are in dire need of fresh products. Two of them count on only one model. The positioning is not clear either: Opel is very similar to Peugeot. Fiat is very similar to Citroen. Lancia wants to enter the premium segment, where DS and Alfa Romeo are already struggling. Maserati hasn't been able to find its identity and is stuck somewhere between the premium and luxury segments. Filosa will have to fix the profit problem and decide what to do with all those brands. Selling some off might well meet willing buyers from China eager to raise their profile in Europe and avoid recently erected high EU tariffs for EVs. Stellantis, after reporting first quarter sales fell 14% to €35.8 billion ($40.6 billion) compared with the same period last year, said it would not make any predictions about its profits for the year. Stellantis reports profits every six months, not quarterly. Filosa faces big decisions over the next six to 12 months requiring significant strategic adjustments. Cost-cutting measures, better alignment of production with demand, and improved software and electrification strategies will be crucial, analysts say. HSBC Global Research, in a report on Filosa's appointment. offered these bullet points – On paper his CV looks a good fit for the role, given he is: - An auto guy, having worked exclusively in the industry for over 25 years - A Italian native from Naples, so understands Europe - Has spent a good deal of time in South America (Stellantis 3rd largest profit source) - Lives in Detroit, which is arguably where the heavy lifting needs to be done.
TimesLIVE
a day ago
- Automotive
- TimesLIVE
Alfa Romeo could postpone launch of new Stelvio SUV: sources
Alfa Romeo is set to postpone the launch of the new version of its Stelvio large SUV as it reassesses its strategies amid tepid demand for electric vehicles (EVs), two sources told Reuters on Thursday. The new Stelvio, which is due to be produced in Cassino, central Italy, will not start deliveries before September or October next year, one of the sources said. It was previously set to be unveiled later this year and sold in the first quarter of 2026. Alfa Romeo — part of the Stellantis group which also owns Fiat, Jeep and Peugeot — is developing a hybrid version of the model, which was initially planned to be sold only in EV guise, a second source said. The rescheduled launch could slow, at least in the short-term, a wider plan to revive production and jobs in Italy that Stellantis presented to the Italian government at the end of last year. Stellantis on Wednesday appointed its North American chief Antonio Filosa as its new CEO. Earlier this month, the head of the carmaker's European operations said the company was working on an update of the plan. Though the new Stelvio is based on Stellantis' multi-powertrain 'STLA large' platform, it will take some time for the group to also develop its hybrid version, the second source said. Assessments of powertrain options are not affecting plans for the new version of Alfa Romeo's Giulia sport sedan, whose launch is foreseen for next year, the same source added. A spokesperson for Stellantis said the revision of the group's plan for Italy 'includes an expansion and reshaping of activities in the country in light of current market conditions, uncertainties surrounding EU regulations and the impact of tariffs'. Demand for EVs is struggling to pick up in Europe and many expect the EU could slow the shift towards electrification in the industry. In the US, which accounts for about 15% of Alfa Romeo's volumes, tariffs could affect sales of the brand's European-made cars. Stellantis earlier this year hired consultant McKinsey to advise on the effects of US tariffs on Alfa Romeo and its Maserati luxury brand.
Bloomberg
2 days ago
- Automotive
- Bloomberg
Ex-Stellantis Boss Says New CEO Is ‘Logical' Choice
Six months after he quit as chief executive of automaker Stellantis NV, Carlos Tavares lives on a farm, makes port wine, and says he has sympathy for anyone stepping into the auto industry during the 'chaos' of the US trade war. On Wednesday, Stellantis named Antonio Filosa its new CEO. Filosa is a company veteran picked, in part, because of his US experience, finally replacing Tavares, who stepped down in December after presiding over slumping sales and profit.
Time of India
2 days ago
- Automotive
- Time of India
Alfa Romeo could postpone launch of new Stelvio SUV, sources say
Alfa Romeo is set to postpone the launch of the new version of its Stelvio large SUV as it reassesses its strategies amid tepid demand for electric vehicles, two sources told Reuters on Thursday. The new Stelvio, which is due to be produced in Cassino, central Italy, will not start deliveries before September or October next year, one of the sources said. It was previously set to be unveiled later this year and sold in the first quarter of 2026. Alfa Romeo - part of the Stellantis group which also owns Fiat, Jeep and Peugeot - is developing a hybrid version of the model, which was initially planned to be sold only in full-electric (EV) guise, a second source said. The rescheduled launch could slow, at least in the short term, a wider plan to revive production and jobs in Italy that Stellantis presented to the Italian government at the end of last year. Stellantis on Wednesday appointed its North American chief Antonio Filosa as its new CEO. Earlier this month, the head of the automaker's European operations said the company was working on an update of the plan. Although the new Stelvio is based on Stellantis' multi-powertrain "STLA large" platform, it will take some time for the group to also develop its hybrid version, the second source said. Assessments of powertrain options are not currently affecting plans for the new version of Alfa Romeo's Giulia sport sedan, whose launch is foreseen for next year, the same source added. A spokesman for Stellantis said the revision of the group's plan for Italy "includes an expansion and reshaping of activities in the country, in light of current market conditions, uncertainties surrounding EU regulations, and the impact of tariffs". Demand for EVs is struggling to pick up in Europe and many expect the European Union could slow the shift towards electrification in the industry. In the U.S., which accounts for around 15% of Alfa Romeo's volumes, tariffs could impact sales of the brand's European-made cars. Stellantis earlier this year hired consultant McKinsey to advise on the effects of U.S. tariffs on Alfa Romeo and its Maserati luxury brand.
