Is a New CEO Reason Enough to Buy a Stellantis Turnaround?

Group 1: Company Overview - Stellantis shares have declined approximately 56% over the past year, with former CEO Carlos Tavares resigning amid conflicts with the board and dealer frustrations [1][2] - Newly appointed CEO Antonio Filosa faces significant challenges in mending relationships with dealers, suppliers, and unionized employees [2][4] Group 2: Dealer Relationships - Tavares' focus on short-term profits and mismanagement from the merger of Fiat Chrysler Automobiles and PSA Group led to strained dealer relationships, with dealers seeking larger incentives to move inventory [3][4] - Stellantis has received the lowest score in Plante Moran's annual supplier survey for five consecutive years, indicating ongoing issues with supplier relationships [4] Group 3: Strategic Decisions - Filosa must decide which brands to invest in, as Tavares initially set a 10-year plan for brand performance but later indicated that reviews could occur as early as 2026 [6][7] - The company is heavily impacted by tariffs, particularly due to its reliance on factories in Mexico and Canada, with estimates suggesting a potential 75% reduction in earnings this year due to tariffs [7][8] Group 4: Investment Considerations - Despite a low price-to-earnings ratio of 4.7 and a dividend yield of 7.6%, the uncertainty surrounding Stellantis' future makes it less attractive for investors compared to other opportunities in the automotive industry [9]