Latest news with #Tavares
Yahoo
2 days 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
Yahoo
2 days ago
- Automotive
- Yahoo
Stellantis and Amazon discontinue in-car technology partnership
Stellantis and Amazon are discontinuing their partnership on the SmartCockpit in-car software project, initially aimed at enhancing the driving experience and showcasing their vehicle-tech capabilities. Both the firms have mutually decided to wind down their collaboration, reported Reuters. The SmartCockpit project was intended to integrate Amazon's technology into vehicles to create a more personalised and connected driving experience. The project's termination is emblematic of the challenges traditional automakers face in adopting advanced vehicle software in partnership with Silicon Valley. A statement from the firms said: "Stellantis remains a valuable partner for Amazon, and the companies continue to work together on a range of initiatives." The SmartCockpit project, announced in 2022, was expected to transform Stellantis vehicles into smart, connected environments, offering personalised settings and home automation features. The venture was part of Stellantis's strategy to compete with electric vehicle leaders like Tesla and BYD, leveraging Amazon's software prowess. Stellantis's former CEO Carlos Tavares had expressed his ambition for the partnership to make their vehicles "the most wanted, most captivating place to be, even when not driving." However, Tavares's abrupt departure last year and Stellantis's declining stock value, which fell by around 40% in 2024, have marked a period of difficulty for the automaker. The importance of automotive software has grown significantly, with it controlling various aspects of modern vehicles, including safety features and infotainment systems. Legacy automakers have been challenged to develop these systems efficiently, often resulting in partnerships or talent acquisition from tech companies. While the specific reasons for the SmartCockpit project's end are unclear, both companies have stated that the decision allows them to concentrate on solutions that align with their evolving strategies. Stellantis, which manages a complex array of models and suppliers, faces greater challenges in software implementation compared to companies with simpler lineups, like Tesla. The SmartCockpit was part of Stellantis's broader technological initiative, including the STLA Brain electrical architecture and the Autodrive driver-assistance system. Despite the end of this partnership, Stellantis will continue to use Amazon Web Services for data storage and updates, and Alexa will remain available in some of its vehicles. Stellantis may seek alternative operating systems, such as Google's Android platform, to continue the development of SmartCockpit. Amazon's internal team, working on what was known as "Project Quatro," aimed to compete with Google's Automotive Services, the prevalent Android-based system used by many automakers. "Stellantis and Amazon discontinue in-car technology partnership" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
NZ Autocar
3 days ago
- Automotive
- NZ Autocar
Antonio Filosa from Jeep is the new Stellantis CEO
Stellantis has announced ex-Jeep CEO Antonio Filosa is its new CEO, replacing Carlos Tavares. Filosa will report to Stellantis chairman John Elkann. A new leadership team will be named shortly for the 14 brands under the Stellantis umbrella. Tavares was ousted from the CEO position following falling sales in the US. The company says Filosa was selected as Tavares's replacement based on his proven track record, and leadership skills. His global management experience was also taken into consideration. Filosa is Italian and joined Fiat in 1999. He eventually became COO of FCA Latin America. In 2021, he became COO for Stellantis South America and then global CEO of Jeep in late 2023. He oversaw the launch of the Jeep Avenger crossover. This EV has driven substantial growth for Jeep in Europe. Filosa also oversaw development of Recon and Wagoneer S. More recently, he launched the new-generation Jeep Compass which should boost Jeep sales globally. Moreover, he briefly held the post of COO for the Americas. There he drove a significant reduction in dealer stock, among other things. Of his new position, Filosa said: 'It is my great honour to be named the CEO of this fantastic company. I am grateful…for the confidence they have placed in me to lead our business during this pivotal time for our industry. 'I have always been inspired by the immense talent, passion and commitment of our people at Stellantis and the power of trusting our teams to achieve excellence. 'We have the world's best and most iconic brands in automotive history and an over 100-year heritage of innovation. 'That legacy, combined with our relentless dedication to giving our customers the products and services they love, will continue to be key to our success.' Elkann said: 'Antonio's deep understanding of our company…and of our industry equip him perfectly for the role of chief executive officer…' 'I have worked closely with Antonio over the past six months… and his strong and effective leadership…have confirmed the excellent qualities he brings to the role. 'Together with the entire board, I look forward to working with him.'
The Hindu
3 days ago
- Automotive
- The Hindu
Amazon's in-car software deal with Stellantis is winding down
Amazon's deal with Stellantis to create in-car software that the companies hoped would transform the driving experience while bolstering their vehicle-tech credentials is "winding down," the companies confirmed after a Reuters inquiry. The Stellantis SmartCockpit project, which would rely on Amazon's in-car technology, is the latest example of traditional automakers struggling to work with Silicon Valley to introduce more sophisticated vehicle software. 'Stellantis remains a valuable partner for Amazon, and the companies continue to work together on a range of initiatives," the companies said in a statement, adding that the decision to end their joint work on SmartCockpit was mutual. The project between the Seattle tech giant and the maker of Jeeps, Peugeots and Alfa Romeos was hailed by the CEOs of both companies when it was announced in 2022. The two planned to develop features that would make the cars feel like an extension of home by detecting the driver and personalising settings such as the thermostat, navigation and even home automation, like turning on lights. Stellantis had hoped Amazon's software expertise would help the global automaker in the race against companies like Tesla and China's BYD. And for Amazon it was meant to serve as a prototype for a wider rollout to more automakers. In a January 2022 press release, Stellantis's then-CEO Carlos Tavares said he hoped the partnership would help make the vehicles "the most wanted, most captivating place to be, even when not driving." Tavares left the automaker abruptly last year, and the company on Wednesday named its North American chief Antonio Filosa as its new chief executive. Stellantis has been trying to revive its slumping stock, which fell about 40% in 2024, amid disappointing sales, especially in North America. Automotive software has emerged as one of the most important, and difficult, areas for legacy automakers to nail. Much of what modern cars do today is dictated by code, including the feel of the brakes, infotainment system, and advanced driving-assistance features such as automated steering – for which automakers can charge subscription fees, unlocking significant revenue streams. Ford recently axed its next-generation electrical architecture due to ballooning costs around the technology. Reuters couldn't determine any singular reason the partnership on SmartCockpit ended. The companies said the shift "will allow each team to focus on solutions that provide value to our shared customers and better align with our evolving strategies." Relative newcomers, like Elon Musk's Tesla, built electrical and software systems that can quickly deliver new features or fixes to customers at a lower cost to the company. Traditional carmakers, including Volkswagen and General Motors, have struggled to master these systems on their own, and have been poaching talent from Silicon Valley or forming partnerships in an effort to reverse that trend. Unlike Tesla which has very little complexity across its smaller lineup of vehicles, Stellantis manages dozens of models across 14 brands and a maze of global suppliers, increasing the challenges around implementing new software. SmartCockpit was initially planned to arrive in vehicles in late 2024 to early 2025. It was a part of what Stellantis called its ABC platform, which included its electrical architecture, called STLA Brain, and Autodrive driver-assistance system. Under the agreement, Stellantis would pay Amazon for access to the software in each car, as well as other maintenance fees. As envisioned, Amazon would pay Stellantis incentive fees for things like drivers signing up for its music subscription service through the vehicles, two sources said. The automaker also partnered with Amazon to use the tech company's cloud business, called Amazon Web Services, to store and update data across its complex lineup. Stellantis will continue to rely on AWS, the companies said, and Alexa will also still be available in some Stellantis vehicles. Stellantis could potentially continue work on the SmartCockpit with another operating system as its base, such as Google's Android platform, people familiar with the matter said. Amazon hoped that the team's work, internally called Digital Cabin or 'Project Quattro,' would rival Google's Automotive Services, the standard Android-based operating system used by many automakers, one of the sources said. Most of Amazon's Digital Cabin staff has been reassigned or left the company, one of the people said.
TimesLIVE
3 days ago
- Automotive
- TimesLIVE
Stellantis dealers pin US turnaround hopes on new CEO Filosa
Farrish was the top signature on a letter in September admonishing Tavares for a pricing strategy that retailers complained led to a steep sales decline. Tavares had pushed for cost cuts that alienated many car sellers, suppliers and unions. The company faced lawsuits from shareholders and unfair labour practice charges from the United Auto Workers union. Stellantis has since been working to repair these connections and lift the company's stock price and North American sales. It brought back longtime executives such as Ram Chief Tim Kuniskis to lead its brands. Filosa has been meeting with dealers around the country and is expected to speak with the Stellantis dealer council on Wednesday. The turnaround after Tavares' departure has been slow. First-quarter net revenues fell 14% year over year globally, and were down 25% in North America. Shipments in the region also faltered. Filosa is tasked with reversing this slump while facing billions in added costs from tariffs on imported cars that US President Donald Trump implemented in April. Stellantis and some other carmakers have suspended their annual guidance, citing uncertainty around the levies. The company in 2024 imported over 40% of the 1.2-million vehicles it sold in the US, mostly from Mexico and Canada. Mark Trudell, general manager of Extreme Dodge Chrysler Jeep dealership in Jackson, Michigan, called Filosa's appointment the 'right decision' at this time. 'Everything I hear from the inside is that he knows the North America market better than his predecessor,' Trudell said. Stellantis executives need to prioritise where to go with the electric-vehicle market and how to handle tariffs, he added. Thad Szott, dealer partner at Szott Auto Group, said Filosa came to his dealership in White Lake, Michigan, more than a year ago and talked to him for about an hour. 'He has had a lot of experience, listens to US dealer feedback, and I'm optimistic we will start taking US market share back,' Szott said.
