Stellantis CEO announces US$70B turnaround plan
Stellantis CEO Antonio Filosa unveiled a €60 billion (US$70 billion) five-year turnaround plan, emphasizing partnerships, core brand focus, and monetizing excess factory capacity. The strategy includes 60 new models by 2030, cost cuts of €6 billion by 2028, and a shift toward affordable vehicles, though shares initially fell due to execution concerns.
Stellantis announced a €60 billion (US$70 billion) restructuring plan on Thursday, marking a strategic shift under new CEO Antonio Filosa. The five-year initiative prioritizes partnerships, a focus on core brands like Jeep, Ram, Peugeot, and Fiat, and leveraging excess factory capacity for third-party production. Filosa stated the plan aims for 'profitable and sustainable growth,' breaking from the approach of former CEO Carlos Tavares. The company plans to launch 60 new models by 2030, including internal combustion, hybrid, and fully electric vehicles. Investments will concentrate on three global platforms, such as the modular 'Stella-One,' with 50% of global volumes expected to come from these by 2030. Stellantis also targets €6 billion in annual cost cuts by 2028 compared to 2025. New partnerships include manufacturing tie-ups with Chinese firms Leapmotor and Dongfeng, as well as collaborations with Tata Motors and tech companies like Qualcomm, Applied Intuition, and self-driving startup Wayve. The strategy seeks to reduce costs in software and autonomous driving development while monetizing underused plants. Stellantis will reposition brands like Chrysler and Alfa Romeo regionally, while Lancia and DS will take specialized roles under Fiat and Citroën. The company forecasts 25% revenue growth in North America by 2030, with adjusted operating income margins of 8% to 10%, and 15% revenue growth in Europe, with margins of 3% to 5%. Shares in Milan-listed Stellantis dropped around 5.2% by 1420 GMT, reflecting investor concerns over execution risks and limited visibility. Analysts noted high expectations and uncertainty about the plan’s implementation, particularly regarding potential brand divestments.
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