Stellantis is nothing more (or less) than FCA + PSA. Same brands, same positioning. The new entity STLA would allow the repective brands to survive the subsidized Chinese Invasion and the imposed emission legislation both in Europe and USA thanks to synergies.
Profits generated in Europa, LatAm and the USA in particular came in handy to try to revive Fiat EU, Alfa Romeo, Lancia and ailing Maserati.
Tavares' 2015 Back in the Race worked well, his 2017 Push to Pass (now including GM's Opel/Vauxhall) worked miracles. Then came 2021 Dare Forward, outlining STLA's strategy towards 2030 including the gradual switch from ICE to BEV.
2021, 2022, 2023 and H1 2024 brought huge profits and highest margin of the industry.
Trainwreck in slow motion:
German opposition, read unrelenting lobbying in Brussels, to have the policy makers postpone emission dates caused havoc among carmakers, in particular STLA.
Reason: As PSA was the first to comply in 2017, so was STLA (EU). With plans overboard the losses where humongous: scaling down EV, paying off all the suppliers who were contracted and re-igniting ICE production is a costly affair as GM, Ford, VW can testify.
You leave me puzzled. Prior to writing your article I am sure you did research, right?
A company with 180 bn in revenues, good Industrial FCF and 2026 Q1 sales up in the USA, LatAm an Europe will surely stick around for a while. A $26 bn write-off sounds more dramatic than it actually is. Leave that to these shrewd bookkeepers ;)
Positive as well: its 20% stake in Leapmotor and 51% in LM International will have a positive effect on the bottom line. LM is one of the few gainers (101% in April) in China, were f.i. VW collapsed with 46,7%.
Best wait for Filosa’s Strategy Update on the 21st. Next to Jeep’s and Peugeot’s return to the Chinese market (JV with longtime partner DongFeng) there might be more interesting announcements.
You’re right that the $26.3 billion loss was accounting-heavy, and Leapmotor’s 101% April growth is genuinely impressive. I completely ignored LM, since it seems like such a small part of the portfolio and I believe they have a minority stake.
However, industrial FCF and revenue scale don’t resolve the core problem: 14 overlapping brands competing against themselves in mature markets. Ram’s 27% growth and Wrangler’s 17% growth prove my thesis: focused brands with clear identity win. The question is whether Filosa’s May 21st strategy will actually rationalize the portfolio or just redistribute resources across the same structural mess. Re-entering China with Jeep and Peugeot could work, but it depends entirely on whether they’re replacing failed strategies or stacking new ones on top.
Thank you for the historical context. Does this mean you think they can survive as they are, that this is a short term (if dramatic) loss and they are turning around?
'Survive'?? As go bust? With all that cash pouring in not very likely. Why didn't you share your doubts back in 2021, 2022, 2023?
Was it because the company generated $500 bn in revenue, $60 bn in net profit, Tavares was elected Automotive CEO 3 years in a row and STLA was the envy of the industry with its 13% margin, 17% in the USA?
2026 STLA is the same as 2021 STLA only hammered by the authorities: the EU and US Administration introduced/imposed Emission Directives. Non-comply meant billions in fines, year after year. No one could predict German carmakers and Trump would be able to have this Legislation gone.
Again, ALL Legacy Carmakers suffer, the Europeans in particular. Ford and GM have a huge and highly profitable homemarket, global #1 Toyota took its time to develop BEV's and as such avoided >$20 bn investments to develop a BEV infrastucture.
Double whammy for STLA: it developed this infra BOTH in the US and Europe. With Tesla's vertical approach not possible any time soon, it contracted a slew of partners to deliver battery packs, software and logistics. Simulataneoulsy Giga's were planned and ICE production gradually phased out.
Can stop here: with Legislation off-the-table ALL Legacy Automakers had to scale-down (EU) or cancel (US) their respective BEV investments and re-ignite ICE production. Ford and GM each had to write-off $19 bn, STLA $26 because of it's exposure in the US and EU.
Oh my :)
Stellantis is nothing more (or less) than FCA + PSA. Same brands, same positioning. The new entity STLA would allow the repective brands to survive the subsidized Chinese Invasion and the imposed emission legislation both in Europe and USA thanks to synergies.
Profits generated in Europa, LatAm and the USA in particular came in handy to try to revive Fiat EU, Alfa Romeo, Lancia and ailing Maserati.
Tavares' 2015 Back in the Race worked well, his 2017 Push to Pass (now including GM's Opel/Vauxhall) worked miracles. Then came 2021 Dare Forward, outlining STLA's strategy towards 2030 including the gradual switch from ICE to BEV.
2021, 2022, 2023 and H1 2024 brought huge profits and highest margin of the industry.
Trainwreck in slow motion:
German opposition, read unrelenting lobbying in Brussels, to have the policy makers postpone emission dates caused havoc among carmakers, in particular STLA.
Reason: As PSA was the first to comply in 2017, so was STLA (EU). With plans overboard the losses where humongous: scaling down EV, paying off all the suppliers who were contracted and re-igniting ICE production is a costly affair as GM, Ford, VW can testify.
Including STLA, >$100 bn burned.
You leave me puzzled. Prior to writing your article I am sure you did research, right?
A company with 180 bn in revenues, good Industrial FCF and 2026 Q1 sales up in the USA, LatAm an Europe will surely stick around for a while. A $26 bn write-off sounds more dramatic than it actually is. Leave that to these shrewd bookkeepers ;)
Positive as well: its 20% stake in Leapmotor and 51% in LM International will have a positive effect on the bottom line. LM is one of the few gainers (101% in April) in China, were f.i. VW collapsed with 46,7%.
Best wait for Filosa’s Strategy Update on the 21st. Next to Jeep’s and Peugeot’s return to the Chinese market (JV with longtime partner DongFeng) there might be more interesting announcements.
You’re right that the $26.3 billion loss was accounting-heavy, and Leapmotor’s 101% April growth is genuinely impressive. I completely ignored LM, since it seems like such a small part of the portfolio and I believe they have a minority stake.
However, industrial FCF and revenue scale don’t resolve the core problem: 14 overlapping brands competing against themselves in mature markets. Ram’s 27% growth and Wrangler’s 17% growth prove my thesis: focused brands with clear identity win. The question is whether Filosa’s May 21st strategy will actually rationalize the portfolio or just redistribute resources across the same structural mess. Re-entering China with Jeep and Peugeot could work, but it depends entirely on whether they’re replacing failed strategies or stacking new ones on top.
Thank you for the historical context. Does this mean you think they can survive as they are, that this is a short term (if dramatic) loss and they are turning around?
'Survive'?? As go bust? With all that cash pouring in not very likely. Why didn't you share your doubts back in 2021, 2022, 2023?
Was it because the company generated $500 bn in revenue, $60 bn in net profit, Tavares was elected Automotive CEO 3 years in a row and STLA was the envy of the industry with its 13% margin, 17% in the USA?
2026 STLA is the same as 2021 STLA only hammered by the authorities: the EU and US Administration introduced/imposed Emission Directives. Non-comply meant billions in fines, year after year. No one could predict German carmakers and Trump would be able to have this Legislation gone.
Again, ALL Legacy Carmakers suffer, the Europeans in particular. Ford and GM have a huge and highly profitable homemarket, global #1 Toyota took its time to develop BEV's and as such avoided >$20 bn investments to develop a BEV infrastucture.
Double whammy for STLA: it developed this infra BOTH in the US and Europe. With Tesla's vertical approach not possible any time soon, it contracted a slew of partners to deliver battery packs, software and logistics. Simulataneoulsy Giga's were planned and ICE production gradually phased out.
Can stop here: with Legislation off-the-table ALL Legacy Automakers had to scale-down (EU) or cancel (US) their respective BEV investments and re-ignite ICE production. Ford and GM each had to write-off $19 bn, STLA $26 because of it's exposure in the US and EU.