Stellantis Gamble Resetting the Table in Detroit and Beyond

The Winds of Change are Blowin'

Alright listen up. Word on the street is Stellantis that big beast of a car company is facing a reckoning. Antonio Filosa the new top dog says they're sticking together but the numbers tell a different story. 22 billion euros in charges – that's a bloody fortune. They're blaming it on restructuring and changing their tune on these electric contraptions. Reminds me of betting on a horse race and realizing halfway through it's got a limp. "We want to stay together for many years to come," he says. Famous last words eh? In my experience when someone says that it usually means the knives are already out.

Customer is King or So They Say

Filosa's blathering on about putting customers first. Says it's an "important strategic reset of our business model." Sounds like damage control to me. They're bringing back V8 engines to the U.S. models. See even these fancy pants executives know you can't beat the classics. But the real question is can they pull it off? They've lost ground in the market and the stock prices are taking a beating. The company's Italian shares fell 25% Friday. On Wall Street the transatlantic firm's New York listed stock plummeted 23%. Seems like the market is already betting against them. And speaking of bets I understand the strategy the games the ads and the trades in the Super Bowl Commercials Now a Trading Game Very Interesting. It's all a big game. If you can't win you lose.

Facing the Music Again

They're admitting to mistakes pointing fingers at the old regime. Classic move. Carlos Tavares the previous boss is getting the blame. But let's be honest this goes deeper than one man. It's about adapting to a world that's changing faster than a Shelby on the open road. They're rescheduling product plans and tackling new emission regulations in the U.S. This reminds me of when I had to realign my business after the war. Sometimes you've got to take a step back to move forward.

The Devil is in the Details

The numbers are grim. A net loss is expected for 2025. For 2026 they're aiming for a small increase in revenue. Ambition? Or desperation? I've seen enough balance sheets to know when a company is clutching at straws. "While charges were expected the amount comes in above F ($19.5B) and GM ($7.6B)." Translation? They messed up big time. As my Aunt Polly used to say "There's God and there are the Peaky Blinders." In this case the Peaky Blinders are the shareholders and they're not happy.

Five Years In Where are They Headed?

It's been five years since Fiat Chrysler and Groupe PSA joined forces. They were supposed to be the fourth largest automaker in the world. But they've stumbled. Global sales are down and market share is shrinking. They aimed for profits over market share and it backfired. As I always say "You listen to the business not your heart." And right now the business is telling Stellantis they're in trouble. They dropped from fourth in U.S. sales to sixth declining from an 11.6% market share to 8% during that time frame.

The Next Move: Checkmate?

So what's next? Filosa promises more details at the investor day in May. But I wouldn't hold your breath. The car game is a tough one. Like I always say "Everyone's a whore Grace. We just sell different parts of ourselves." And Stellantis is about to find out what parts they're willing to sell to survive. They need to adapt innovate and maybe just maybe remember what made them great in the first place. Otherwise they'll end up like so many others – a footnote in history. This whole affair reminds me of a chess game you make one wrong move it is check mate!