How Filosa plans to turn Stellantis around

Results show strategy is starting to work

- GIULIO PIOVACCARI NORA ECKERT GILLES GUILLAUME

A Jeep Grand Cherokee 4XE in 2021. Under its new CEO, Stellantis has re-introduced popular models like the Cherokee that were cut by his predecessor.

(BLOOMBERG)

New Stellantis CEO Antonio Filosa is prioritising vehicle sales growth over profits, including resorting to lower-margin fleet sales and investing in affordable models to recapture market share in North America and Europe and get the world's No. 4 automaker back on track, four sources familiar with the matter told Reuters.

Mr Filosa, who took over in June, has launched what one source described as an "emergency room" operation to fix the mess left by his predecessor Carlos Tavares, who sought high margins through a combination of cost-cutting and price hikes that sparked a customer exodus. Mr Tavares was forced out late last year as Stellantis' 2024 sales plunged 15% in the US — the automaker's main profit driver — while industrywide sales rose 2.2%, leaving dealers choking on stale inventory.

Mr Filosa's immediate aim is to deliver sales and revenues this year above low analyst expectations — the best of which indicate flat results versus 2024 — the same source said. Early data suggests his strategy is beginning to work, as Stellantis' sales rose 6% in North America in the third quarter, the first increase in eight quarters.

Details of Mr Filosa's short-term sales strategy and longer-term brand viability, reported here for the first time, come at a time when the automaker is fighting to regain lost market share. The plans are aimed at restoring credibility with customers, investors and dealers while also keeping car factories running.