Stellantis unveils US$70 billion strategy pivot under Filosa, markets wary

Stellantis on Thursday laid out a 60 billion euro (US$70 billion) strategy that marks a shift under new CEO Antonio Filosa, combining a wave of new partnerships, a sharper focus on core brands and a push to better monetise excess factory capacity.

The five-year investment, which includes 60 new models by 2030 - among internal combustion engine, hybrid and fully electric - underscores a break from the approach of former CEO Carlos Tavares, with Filosa more open to external collaboration.

“The plan is grounded in reality... And it is designed to create a condition for profitable and sustainable growth,” Filosa told investors at the group’s capital markets day.

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A string of announcements ahead of and during the event highlighted the new direction, with Stellantis expanding partnerships in both manufacturing and technology.

Shares down

Investors reacted cautiously to the long-term nature of the targets and limited visibility on execution. Milan-listed shares in the company were down around 5.2 per cent by 1420 GMT.

Fabio Caldato, a fund manager at Stellantis investor AcomeA, said investors were concerned about how quickly the group could deliver on its ambitions.

“Expectations were high, and the initial reaction primarily reflects execution risk and limited visibility regarding the implementation of the plan,” he said, adding that there had been “no significant indication” on whether less strategic brands might be phased out.

Growing reliance on partnerships

New partnerships include production tie-ups with Chinese groups Leapmotor and Dongfeng, as well as cooperation with Tata Motors and its JLR unit in the U.S. In technology, the carmaker is working with firms such as Qualcomm, Applied Intuition and self-driving startup Wayve.

The strategy reflects a growing reliance on partners to share costs and accelerate development, particularly in expensive areas such as software and autonomous driving, while Stellantis is seeking to turn a long-standing weakness - excess manufacturing capacity - into a source of revenue by offering contract production to third parties, rather than bearing the cost of underused plants.

Brand hierarchy and affordable offerings

Filosa set out a clearer hierarchy across Stellantis’ 14-brand portfolio, the largest in the industry.

Around 70 per cent of brand and product investment will be concentrated on Jeep, Ram, Peugeot and Fiat, along with its Pro One commercial vehicles division.

Other marques, including Chrysler and Alfa Romeo, will be repositioned more regionally, with Lancia and DS shifting towards specialized roles under Fiat and Citroen.

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The group’s product push will center on a broad range of more affordable models aimed at supporting volume growth, as well as profitability.

“This is more than a product strategy. It’s a profit strategy,” said Tim Kuniskis, head of North America brands.

Jim Walen, a Stellantis dealer in Seattle, on Thursday said he was favoring plans for more affordable vehicles, especially a smaller pickup truck.

“I love it. It’s spot on. It’s exactly what the market needs,” he said.

Platform shift

Stellantis said it would invest 24 billion euros in platforms, powertrains and technologies, while targeting 6 billion euros in annual cost cuts by 2028 compared with 2025.

The group forecast that by 2030 50 per cent of its global annual volumes to come from just three global platforms, including the new modular ‘Stella-One.’

Stellantis on Thursday guided for revenue in North America to grow by 25 per cent by 2030, with adjusted operating income margins of eight per cent to 10 per cent while Europe revenue is seen rising 15 per cent with margins of three per cent to five per cent.

(Reporting by Nora Eckert in Auburn Hills, Giulio Piovaccari in Milan and Gilles Guillaume in Paris; additional reporting by Kalea Hall in Detroit; writing by Giulio Piovaccari; Editing by Susan Fenton, Louise Heavens and Nick Zieminski)