Stellantis: A fast track to where exactly?… Focused on the United States and four brands, Stellantis strategic plan meets the (legitimate) skepticism of the Stock Exchange

Stellantis has detailed its strategic plan “FaSTLAne 2030”, which involves streamlining investments towards North America and prioritizing brands. The 2030 goals exceed analysts’ expectations. However, the group’s recovery horizon remains distant, and the market is not very confident in the company’s promises.

Struggling both in the stock market – the share price has plummeted by more than four times since March 2024 – and operationally, with €4.5 billion in cash burn last year, Stellantis critically needs to rebuild trust with the market.

The investor day on Thursday, the second in the group’s history following the 2021 merger between Peugeot SA and Fiat Chrysler, was seen as a crucial opportunity to regain investor confidence. Last Friday, UBS described it as a “make or break” moment and emphasized its significance for the group’s future stock performance.

Head of the group for a year now, succeeding Carlos Tavares, Antonio Filosa extensively outlined the new roadmap. “Baptized ‘FaSTLAne 2030’,” this strategic plan was presented from 2 pm to nearly 10 pm French time.

Despite the promising targets for 2030, investors were not fully convinced. Stellantis shares closed down 1.67% on the Paris stock exchange on Thursday. On Wall Street, the stock ended with a meager increase of 0.4% after dropping over 4% during the session.

In a marked shift in focus both geographically and in terms of brands, Stellantis intends to emphasize the United States, its most profitable region. North America will attract 60% of the company’s investments, with a target to increase revenue in that region by 25% by 2030, aiming for an operating margin between 8% and 10% at that time (compared to -3.1% in 2025).

The company also plans to increase its market coverage in the region and launch 23 new vehicle models. Chrysler and RAM are expected to see a 60% jump in volumes between 2025 and 2030.

On the contrary, Stellantis is adopting a more frugal approach in Europe, announcing a reduction in production capacity on the continent. The company aims to increase the utilization rate of its factories by partnering with Chinese groups Leapmotor and Dongfeng. The current strategy involves sharing certain factories in Spain and France.

The company’s goal to achieve €175 billion in revenue by 2028 and then €190 billion by 2030, with operating margins increasing from 5% in 2028 to 7% in 2030 is seen as ambitious by analysts. Despite these ambitious targets, investors remain cautious about the company’s ability to execute and deliver on its promises.