Stellantis at a Crossroads: Can the Auto Giant Survive the Storm?

Summary

• Stellantis N.V., a major automotive conglomerate formed in 2020, united 14 iconic brands, including Fiat, Chrysler, Jeep, Peugeot, and Opel, under CEO Carlos Tavares, aiming to streamline production and increase profitability.
• Through shared modular platforms and cost-cutting measures, Stellantis achieved high profit margins from 2021 to 2023,
• 2024 brought financial struggles, with Stellantis laying off thousands globally, reducing production forecasts, and lowering its operating margin amid declining sales in North America and Europe.
• Stellantis’ European and U.S. dealers are concerned about stricter EU emissions targets and excess inventory, which could drive down prices, affecting profitability and brand image.
• Stellantis is exploring brand performance reviews with potential sales or shutdowns by 2026 if brands fail to meet financial expectations, marking a critical juncture for the company.

In December 2020, while the world was going through a global health crisis, Stellantis Stellantis N.V., a new multinational automotive manufacturing company formed by Fiat Chrysler Automobiles (FCA) and the French PSA Group, was born. Stellantis became one of the world’s largest automotive groups, bringing together iconic brands like Fiat, Chrysler, Dodge, Jeep, Ram, Peugeot, Citroën, DS Automobiles, Opel, Vauxhall, and more. 

With 14 brands under its umbrella and a gigantic market share (almost half of France and Italy), it was challenging to sail such a ship. Carlos Tavares, the new company’s CEO, took drastic measures to tackle the challenge. However, lately, the ship appears to be drifting aimlessly in the turbulent waters of the automotive industry this year.