Stellantis shares fall 43% as Jeep manufacturer turns five years old and makes a turnaround

The company’s U.S. shares — created by a $52 billion combination of Italian-American automaker Fiat Chrysler and France-based Groupe PSA on Jan. 16, 2021 — have fallen about 43% over the past five years. Italian listed shares have also fallen by about 40%.

Since the combined company’s shares debuted on the New York Stock Exchange on Jan. 19, 2021, days after the merger was completed, the automaker’s shares had been largely in the black — down as much as 74% by March 2024 — until Stellantis reported troubling financial results that year amid cost-cutting efforts meant to support higher profits and the company’s billions of dollars into electric vehicles.

Many of these plans are being changed or eliminated under new Stellantis CEO Antonio Filosa, who succeeded Carlos Tavares last summer. Tavares, a longtime automotive executive, was largely credited with founding the company but left Stellantis abruptly in December 2024.

Filosa is implementing a sales turnaround plan for the automaker, focusing primarily on regaining market share for the Jeep and Ram brands after years of sales declines.

“The strategy we have in front of us is strong and will lead us to growth if we execute it well,” he told reporters at the Detroit Auto Show on Wednesday. “So I believe it is a year of execution.”

Filosa did not rule out the possibility of regionally refocusing or downsizing the company’s extensive brand portfolio, which also includes Italian nameplates Fiat and Alfa Romeo, which have not performed well domestically.

He said he believes the company should “stick together” after some speculation. also from Tavaresthat it would be better to sell assets or brands.

Filosa said the next step in the company’s plans will come at a meeting this month with more than 200 company executives, who will focus on the upcoming capital markets day, company culture and 2026 execution.

Investors were curious about a new strategy for Stellantis after Tavares’ departure. He left amid troubling sales and financial results as the company aimed to achieve profit margins of 10% or more and double net revenues under its “Dare Forward 2030” business plan.

Stellantis’ U.S. shares have risen 2% since Filosa took over as CEO on June 23. They closed Friday at $9.60 per share, down 4.2%.

Filosa declined this week to discuss the company’s past mistakes, but company executives previously told CNBC that Tavares’ fixation on cost cuts and profits was hurting business, as well as the company’s products, employees and relationships with suppliers, unions and dealers.

Filosa has spent much of his time trying to repair those bonds, especially at the company’s desperate U.S. franchise stores. He has also approved drastic changes to the company’s product plans, including lowering prices and reprioritizing products away from electrified vehicles.

“Over the next six months, I see the changes we will make that we need to make to create the bright future we need,” he said of his tenure to date as CEO.