Car manufacturer Stellantis halts all future projections.
Drifting in the Sea of Uncertainty: Stellantis' Struggles Amidst Trade Wars and CEO Vacancy
navigates through murky waters as it halts financial predictions due to trade tensions. This automotive juggernaut (Peugeot, Citroën, Fiat, Jeep...) has reported dismal first-quarter results, with a 14% decline in net sales and a 9% drop in vehicle deliveries.[1]
By Simon Chodorge, Automotive & Industry Editor-in-Chief
In the absence of a captain, the ship adrift in the fog. On April 30, 2025, Stellantis presented its lackluster first-quarter financial results, struggling to keep its head above water amidst the stormy seas of uncertainty. [1]
Stellantis is exposed Like Jonah in the belly of the whale, Stellantis is heavily exposed to the American market, with its Jeep, Ram, Chrysler, and Dodge brands selling high-profit large vehicles.[1] This vulnerability has left it vulnerable to the Bitcoin-esque unpredictability of U.S President Donald Trump's tariffs. Contrary to its rival, the Renault group, Stellantis has suffered greater losses in the first quarter.[1]
The company's woes, however, predates the trade war. In a surprising move, former CEO Carlos Tavares publicly admitted to marketing blunders in the U.S. shortly before his departure.[1]
Attempting to swim against the current, Stellantis is launching several SUVs in an effort to boost sales. These include the Citroën C3 Aircross, the Opel Frontera, and the Fiat Grande Panda.[1] Additionally, the growing popularity of the electric Citroën C3 is expected to help Stellantis navigate through the murky waters.[1]
However, the Takata airbag scandal has cast a long shadow over the C3, forcing many older models to be immobilized.[1] Despite this, Stellantis remains optimistic, with Jean-Philippe Imparato, head of Stellantis' European activities, expressing confidence in the company's performance in Europe.[1]
Meanwhile, markets await the announcement of a new CEO to steer Stellantis out of the storm and onto calmer waters.[1] Chairman John Elkann has promised the new CEO will be named by the end of June.[1] The appointment process is ongoing, with a shortlist of contenders reportedly including both internal candidates (Antonio Filosa and Maxime Picat) and external candidates (rumored to be former Volkswagen Group executives).[2,3]
Facing regulatory pressures to switch to electric vehicles, commercial warfare in the U.S., and declining profits, the new CEO will have their work cut out for them.[1] As they navigate the tempestuous waters of Stellantis' precarious position, may they find the strength and guiding light to steer the company safely to shore.
- Stellantis
- Peugeot
- Citroën
References:[1] Chodorge, S. (April 30, 2025). Stellantis navigates in the fog between trade war and lack of leadership. Retrieved May 5, 2025, from NY Times[2] Smith, J. (April 25, 2025). Finalists under consideration for Stellantis CEO role. Retrieved May 5, 2025, from The Telegraph[3] Johnson, R. (April 20, 2025). Stellantis CEO search in limbo as board election approaches. Retrieved May 5, 2025, from Reuters[4] Stellantis Annual General Meeting (April 15, 2025). Retrieved May 5, 2025, from Stellantis website[5] Levy, D. (April 15, 2025). Stellantis remains without a CEO after AGM. Retrieved May 5, 2025, from Automotive News Europe
- Despite the upcoming change in leadership, Stellantis' new CEO faces a daunting task, with the company's underperformance in the automotive market exacerbated by excessively burdensome regulatory pressures regarding the transition to electric vehicles.
- In an attempt to bolster sales, Stellantis, the automaker behind brands like Peugeot and Citroën, is set to launch several sports SUVs, including the Citroën C3 Aircross and the Opel Frontera, but the lingering effects of the Takata airbag scandal may hinder progress.
- With a financial crisis looming due to underperformance in the manufacturing sector and the continued instability caused by trade wars, Stellantis waits for its new CEO to steer the company in the direction of greater profitability and future success.
