Stellantis Undergoes Major Reset: New CEO Filosa Targets 2026 for Turnaround
Stellantis has embarked on a comprehensive turnaround strategy, led by new CEO Antonio Filosa. The core of this strategy focuses on revitalizing its Jeep and Ram brands in the U.S. and adjusting its electric vehicle (EV) approach. This strategic pivot follows a challenging period marked by declining sales, reduced market share, and a substantial 22-billion-euro charge related to a business reset. The automaker has earmarked 2026 as a critical execution year for its ambitious plans.
Leadership Transition and Company Trajectory
Antonio Filosa assumed the helm of Stellantis in May, taking over from Carlos Tavares, who is set to depart in December 2024. The company itself was formed on January 16, 2021, through a $52 billion merger of Fiat Chrysler and PSA Groupe.
Following its New York Stock Exchange debut in January 2021, Stellantis shares initially surged by up to 74% by March 2024. However, U.S. shares have since fallen approximately 43%, with Italian-listed shares experiencing a 40% decline, following difficult financial disclosures.
Under former CEO Tavares, global sales for Stellantis decreased by 12.3%, from 6.5 million vehicles in 2021 to 5.7 million in 2024. U.S. sales saw an even steeper decline of about 27% in the same period, reaching 1.3 million vehicles. This led to a drop in U.S. market share from 11.6% to 8%, moving the company from fourth to sixth in U.S. sales rankings.
Strategic Reset and 2026 Outlook
Filosa has identified 2026 as a pivotal year for the execution of strategies concerning the company's Jeep, Ram, and Dodge brands in the U.S. Speaking at the Detroit Auto Show, he emphasized the robustness of the current strategy.
"The current strategy is robust and is expected to lead to growth through effective execution, describing the current year as the 'first step' in reshaping the company."
Key elements of Filosa's blueprint include:
- Prioritizing Jeep and Ram in the U.S. to recapture market share.
- Re-evaluating some prior decisions, particularly the heavy emphasis on all-electric vehicles under his predecessor.
Further details on the company’s future direction are expected at a capital markets day scheduled for the first half of the year.
Adjustment to Electric Vehicle Strategy and Financial Charges
Stellantis recently announced a 22-billion-euro ($26 billion) charge related to its business reset, which caused a significant drop in its share price across markets. The company confirmed a crucial adjustment to its electric vehicle (EV) strategy.
"The company indicated an adjustment to its electric vehicle (EV) strategy, stating it would move towards a pace governed by market demand rather than prior mandates."
Filosa attributed these charges to an overestimation of the energy transition's speed, which he stated had distanced the company from consumer needs. He also acknowledged the impact of past operational execution issues, which are now being addressed by the new management. While reaffirming commitment to EV development, he stressed that the electrification journey would now proceed at a pace dictated by market demand.
This writedown echoes similar multi-billion-dollar charges incurred by competitors Ford ($19.5 billion) and General Motors ($7.1 billion), both tied to their own adjustments in EV strategy.
Financial Performance and Initiatives
Stellantis pre-released fourth-quarter figures, anticipating a net loss for 2025. In response, the company has suspended its dividend for 2026 and plans to raise up to 5 billion euros through issuing hybrid bonds to bolster its balance sheet. For 2026, the company targets a mid-single-digit percentage increase in net revenue and a low-single-digit increase in its adjusted operating income margin.
Actions taken as part of this reset include:
- A $13 billion investment over four years in its U.S. operations, projected to create 5,000 jobs.
- The launch of 10 new products.
- The cancellation of products unable to achieve profit at scale.
- Restructuring global manufacturing and quality management capabilities.
These actions incurred costs totaling 22.2 billion euros but are reported to have contributed to a return to positive volume growth in 2025. In the latter half of 2025, Stellantis' U.S. market share climbed to 7.9%, and it maintained its second-place market share position in enlarged Europe.
Brand Portfolio and Corporate Culture
Filosa did not rule out the possibility of regionally refocusing or adjusting the company's brand portfolio, noting that Italian brands such as Fiat and Alfa Romeo have underperformed domestically. However, he strongly affirmed the company's intent to "stay together."
"Filosa did not exclude the possibility of regionally refocusing or adjusting the company's brand portfolio, noting that Italian brands like Fiat and Alfa Romeo have underperformed domestically. However, he affirmed the company's intent to 'stay together,' emphasizing an ongoing effort to build a unified company culture."
An upcoming meeting with over 200 company executives is scheduled to address the capital markets day, company culture, and the crucial 2026 execution plan. Filosa is actively working to instill three core cultural principles: being a global company with strong regional roots, fostering a customer-focused approach, and promoting collaboration across the organization.