Al Root
Stellantis has a new CEO. He has a big job ahead.
Wednesday, the Chrysler parent named Antonio Filosa as the company's new chief. He previously was Stellantis' chief operating officer.
Former CEO Carlos Tavares resigned in December after bloated dealer inventories led to declining profits. Stellantis reported 2022 and 2023 operating profit of $24.8 billion and $25.4 billion, respectively. Operating profit in 2024 cratered to $9.1 billion. Wall Street estimates $7 billion in operating profit for 2025, according to FactSet.
Part of Tavares' strategy focused on profits over volume, which strained dealer relationships by essentially raising wholesale prices and lowering incentive spending. It worked until it didn't work.
What Filosa's strategy will be is difficult to say. Elements will likely include improving dealer relationships and restoring the balance between production and inventories. He will also be dealing with tariffs. In the U.S., imported cars are subject to a 25% tariff. Stellantis imports about 45% of the cars it sells domestically, mainly from Mexico and Canada.
Investors are reacting with caution. Stellantis stock was roughly flat in early trading, while the S&P 500 and Dow Jones Industrial Average were up 0.1% and flat, respectively.
Coming into Wednesday trading, Stellantis stock was down about 53% over the past 12 months.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 28, 2025 09:41 ET (13:41 GMT)
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