Stellantis NV (STLA.US) is advancing its restructuring plan, raising concerns among French employees that the company's domestic French operations could be damaged as new CEO Antonio Filosa works to get the struggling automaker back on track. Since taking office in June, Filosa has been conducting a comprehensive evaluation of the massive enterprise formed by the merger of Fiat Chrysler and PSA Group. Stellantis owns 14 automotive brands, including Peugeot and Jeep.

The Italian-born executive, who has extensive experience at Fiat Chrysler, has promoted several colleagues who previously worked with him in South America to European management positions. The French Confederation of Management and Executive Staff (CFE-CGC) stated that these personnel changes have raised concerns that French expertise and interests are being marginalized.

The union, which primarily represents white-collar employees, noted in a statement that these adjustments "could challenge the balanced situation formed after the PSA and Fiat Chrysler merger, particularly in automotive manufacturing and future model development." The statement indicated that French expertise is "being pushed to the margins," with concerns that "the status of some French and even European factories may become unstable."

Filosa plans to announce specific restructuring plans early next year, as Stellantis currently faces serious overcapacity at multiple European factories. Since the merger of the two groups in 2021, Stellantis had achieved profitability for several consecutive years, but former CEO Carlos Tavares' strategy of "strict cost control + price increases" gradually revealed negative impacts: inventory of Jeep SUVs and Ram pickups began accumulating at dealerships.

Since Tavares left in December last year, several core members of his team who previously worked at PSA Group have successively departed from Stellantis. In the European market, Stellantis has temporarily shut down multiple factories due to weak demand for certain models.

Meanwhile, reports earlier this month indicated that the new CEO plans to invest approximately $10 billion in the United States, refocusing business on this profit-critical market. Stellantis' decision to increase US operations while reducing some European investments has alarmed unions in France and Italy, where Stellantis produces Fiat and Alfa Romeo models.

In the first nine months of this year, Italy's automotive production plummeted 36%, with a local union representative explicitly stating that the country's factories face the risk of forced closure.

However, Stellantis' efforts to improve its US business are already showing initial results. The group announced Friday that third-quarter vehicle deliveries are expected to increase 13%, primarily due to a 35% year-over-year surge in North American shipments. The relaunch of popular models such as the V8-powered Ram 1500 pickup provided significant support for sales growth.

The administrations of US President Donald Trump and Italian Prime Minister Giorgia Meloni are in close consultation with Stellantis regarding future production decisions. Filosa is scheduled to meet with Italian unions on October 20 to discuss the group's business plans in the country.

Meanwhile, France remains deeply mired in political crisis. Regarding speculation about internal "power struggles" within the company, Filosa has responded. At a Kepler Cheuvreux conference last month, he stated that he has banned the use of terms like "former PSA" and "former Fiat Chrysler," emphasizing "we are now just Stellantis."

Notably, Filosa's first business trip after becoming CEO was to the factory in Sochaux, France, which produces the Peugeot 3008 and 5008 SUV models.