New Stellantis CEO Antonio Filosa faces slew of challenges on day one

Detroit – “The mediation is not worth the journey.”

It was part of the upcoming part Descendant CEO Antonio Philosa’s first public message after being nominated to lead a global automaker. It was a mantra decades in making it, as he spent 25 years, climbing through the company’s rank, began with a role as a night shift paint shop supervisor in Spain.

Quotes also referred to Sergio Marchian, CEO of late Fiat Chrysler, is a patron of Philosa who is revered in the company. The marchian unexpectedly died in 2018, years ago the automaker merged with stalentis, parents for brands such as Jeep, Ram, Fiat and Chrysler.

Several former and current stalentis officials and employees who have worked with Philosa highlighted their connections to Marchian while talking with CNBC. He also described him as an attractive, collective leader, who knows the business well from the factory floor to the C-suit offices, but who faces further challenges and tests.

As Philaosa officially stepped into the role of CEO on Monday, he would need to play a channel – seen as a dynamic executive and thinker who saved the Italian vehicle manufacturer Fiat and America’s Chrisler – who managed to roam around the car manufacturer.

The most recent CEO, Carlos Thawres, who pointed to the merger to create stalentis, Suddenly resigned in December Amid disagreement with the company’s board, the fall in sales of the year and the net profit fell by 70% last year. He was considered a dynamic CEO by people inside and outside the company, like Marchian, but many people thought that they focused a lot on cost cuts, For business loss,

In addition to financial issues, industry experts stated that Philaosa would need to continue bonds with dealers, politicians and employees. Damaged during Tarares’s tenureAnd it will have to handle the company’s investment plans between traditional vehicles and “electrified” models such as hybrids and EVS.

“We need to manage the infection, okay? It’s not a secret that will be electric vehicles [a] Strong part of the future, isn’t it? Not only for stalentis, but also for the motor vehicle industry, “Philosa, the then Stalentis’ Head of the America, Told reporters in January“Speed ​​and speed, perhaps something that needs to be assured a bit.”

At that time Philaosa said that this will be on the new CEO to decide the speed. He described the issues of the company as “a multitask challenge”, who would appoint any board, which eventually he was.

Employees were distraught over cuts and trimming, while the company’s franchiseed retailers were engaged in the sale of stellentis and the loss of market share under the company. In September, the Stalentis National Dealership Council has A. Unprecedented open letter To condemn the tasks of Tarares.

“Your own distribution network, your dealer body, anemic and low position have been left in the position,” said Kevin Ferish, a dealer from Virginia.

Michael Bettenhosan, a dealer in Illinois Philosa fond But said that there is still a lot of work.

“We need to be mutually working together and dive into all issues in North American operations, and we are ready to Antonio, still part of those discussions,” he said.

Global sales of stellentis under Tavares fell from 6.5 million to 12.3% in 2021 – the year the company was formed – 5.7 million in 2024This included about 27% collapse in the US in the period that sold 1.3 million vehicles. The automaker has been dropped from the fourth to 8% from the market share of 11.6% during the time limit.

Filosa – Naples, Native of Italy – said that in January the highest priority for the US was to increase retail market share, including sales to customers, opposite to fleet or businesses.

“We need to do so. It’s not a belief; it is a need,” he said. “American retail market share really measures your ability systematically [grow sales],

The automekar remains in a shortage of a product, with its overall sales below 12% during the first quarter of this year, compared to the same period of a year ago. The company refused to release its year-on-year retail sales.

But new products such as upcoming re -designed Jeep CherokeeExcessive Ram 1500 pickup truck The model and a new gas-operated dodge charger are expected to promote sales, as well as the top line of the automaker.

Since the formation of the company, the revenue of stalentis has increased but 17.2% decline In 2024, 156.9 billion euros ($ 180.6 billion) in 2024, while other vehicle manufacturers General Motors And Ford Motor It was seen that his top lines increased significantly.

RBC Capital Market analyst Tom Narayan wrote in the May 28 investor note, “Philosa stepped in the role of CEO amidst important challenges for the company.” “His immediate priorities include revival of the company’s performance in the US market, streamlining the wide 14-brand portfolio of stellentis, and covering stressful relations with dealers, unions and governments.”

“I think it’s a logical, reliable option,” Told Bloomberg In its first interview with international media since leaving the company in late May. “Hopefully, he will be properly supported by the board. So let’s see.”

Since after Announced as CEO On May 28, Philosa has visited several automakers in the US, Canada and Europe. He was allegedly selected after six months of discovery which included other internal and external candidates.

His public comments about his new situation have depicted him as a humble, grateful executive and father who is proud to join people.

He said, “I am really honored to be appointed as CEO of this great company, Stellentis. It is my home for 25 years. This place is in my blood,” he said. 28 May LinkedIn PostReference Marchian.

Officers of a handful of current and former stellentis described Philosa as a “attractive leader” and “listener”, especially speaking with the plants relaxed and speaking with the staff – a lot like the march.

“I have worked with him side-by-side. … We have grown under Sergio,” Stellentis Global Head of Design Ralph Giles told CNBC. “He is a person. He is a visionary, he is energetic, he is young … and he is eager. He is a great listener. I love his problem-solution abilities, and for me, he loves the design.”

The marchian would refer to its officers as “children”, many of which, such as Gills and Philosa, appointed to their first high-profile leadership positions. Others still include stalentis Ram’s CEO Tim Kuniscis And Chief Marketing Officer Olivier Francois.

“Antonio’s amazing,” Kunisis, who was uncontrolled after a gap of seven months last year, told CNBC, “He is one of the driving forces for me who wants to come back.”

Stellentis CFO Douglas Ostmanan postponed the background of Philosa in the company’s Latin American business manufacturing and manufacturing earlier this month, which remains a high -profitability sector for the company.

Osteman said during a Bernstein event, “He is a very open leader, who I think actually works well with a relationship builder in the organization, in people, in brands, in brands.”

On the appointment of Philaosa, an analysts in an investor note described him as a “safe pair of hands”, but pre-elaborates such as a relatively indifferent option for investors compared to east-eastsApple CFO Luka Chest, which the company was allegedly considering.

“I think investors were quite excited about the possibility of bringing someone from outside,” Bernstein analyst Daniel Rosaka told CNBC. “It’s not that there was no one inside, but after such a large mixture, investors thought that the idea of ​​bringing something from outside was a good.”

Unlike marchion and Thawres, Philosa did not have much experience in such a high-profile role, which were war-tested motor vehicle giants. He came through the company’s Latin American operations and served only a short time in North America – its most important market. While remaining Italian, he has limited work time in Europe, the second most important area of ​​the automaker.

The two sources that agreed to speak on the condition on oblivion also say to be able to speak independently that he is a nose for the Grindstone leader, who can demand several times similar to his predecessors and other CEOs.

Philaosa would also need to restore investor trust, which both march and taware were easily doing. Three sources, including internal sources in the two company, said that they do not yet have the skills of the CEO like their predecessors, something that can come with experience.

UBS analyst Patrick Hamel mentioned in a financial note last month that Philosa’s conversation with the financial community has also been “limited”. Capital market day In June 2024.

Investors did not react strongly to the CEO’s choice, depending on the company’s stock price. When Philosa was declared as CEO on 28 May, the US-list shares of stock declined by 3.2%. Since then, the shares between a litter of outside factors are approximately 10% off.

The decline in daily stock is actually the same when Marchians made their “average status” comments during the company’s first investor day after a combination of Chrysler and Fiat to create “Fiat Chrysler Automobiles” on 6 May 2014, or FCA. The shares of that day fell 3.9%.

The marchian, a philosophy prominent, who was known for his amazing comments, discussed further challenges for the automaker and changed the automotive industry, including not chasing the unprofitable businesses – which should continue to address Philosa and Salentis.

“I told you this morning that our FCA culture gives better response when it is faced with purpose and challenge,” Marchian said. “And the purpose of our plan is because when everything is said and all is done, the mediation is not worth the journey.”