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NEW CEO Is The ONLY Way To Save Stellantis From BANKRUPTCY
Stellantis faces brands dilemma amid CEO search. The bottom line is that Stellantis is still on the Hunt For CEO or Bankruptcy? Plus we are not sure how many of the automaker's brands have a viable future. Brands ranging from bestsellers like Jeep and Peugeot to the struggling names like DS, Lancia, Maserati and Alfa Romeo, the next leader will need a clear strategy for streamlining operations and driving profitability and sell off brands that are not profitable.
Stellantis is the result of the 2021 merger of Fiat Chrysler and Peugeot owner PSA, which creating the world’s fourth-largest automaker. However, the company’s broad brand mix adds complexity, limiting marketing efficiency and making resource allocation difficult. Pushing the green electric initiative has lead to lost sales.
Even worse news, with Stellantis reporting a steep 70% decline in the full year 2024 net profit, falling to 5.5 billion euros ($5.77 billion) from 18.6 billion euros ($19.5 billion) in 2023. Despite the sharp drop, the company expressed confidence in a turnaround, projecting a return to revenue growth and positive cash flow in 2025. Stellantis attributed its weak performance to ongoing industry challenges, including declining demand for new cars, underperformance in North America, and struggles in the Chinese market.
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