Stellantis stock fell 43% as the Jeep maker turns 5 and implements a turnaround

DETROIT — Five years after the transatlantic automaker Stellantis Formed through a merger, the company did not necessarily succeed as investors had hoped.

U.S. shares of the company — created through a $52 billion combination of Italian-American automaker Fiat Chrysler and France-based Groupe PSA on January 16, 2021 — have fallen nearly 43% in the past five years. Italy-listed stocks also fell by almost 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 — rising as much as 74% in March 2024 — until Stellantis reported troubling financial results that year amid cost-cutting efforts aimed at supporting higher profits and its multibillion-dollar push into electric vehicles.

Many of these plans are being changed or canceled under new Stellantis CEO Antonio Velosa, who succeeded Carlos Tavares last summer. Tavares, a longtime auto executive, is credited with founding the company, but he abruptly left Stellantis in December 2024.

Filosa is implementing a sales turnaround plan for the automaker and is particularly focused on regaining U.S. market share for its Jeep and Ram brands after declining sales for years.

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

Velosa did not rule out the possibility of refocusing regionally or reducing the company’s wide portfolio of brands, which also includes Italian brands Fiat and Alfa Romeo, which have not performed well locally.

He said he believed the company should “stay together” after some speculation, including from Tavares, that it would be better to sell assets or brands.

Velosa said the next step in the company’s plans will come during a meeting this month with more than 200 company executives that will focus on the upcoming Capital Markets Day as well as the company’s culture and 2026 execution.

Investors were eager to hear about a new strategy for Stellantis following Tavares’ exit. He left amid worrying sales and financial results as the company strived to achieve profit margins of 10% or more and double net revenues under its “Dare Forward 2030” business plan.

Since Filosa started as CEO on June 23, Stellantis US shares have risen 2%. They closed Friday at $9.60 per share, down 4.2%.

Velosa declined this week to discuss the company’s past missteps, but company executives previously told CNBC that Tavares’ focus on cutting costs and profits is hurting the business, as well as the company’s products, employees and relationships with suppliers, unions and dealers.

Velosa has spent a lot of his time trying to fix those bonds, especially with troubled US retailers. He also approved sweeping changes to the company’s product plans, including lowering prices and reprioritizing products away from electric vehicles.

Regarding his tenure so far as CEO, he said: “In the six months, I see the changes we are going to make that we need to make to create the bright future we need.”