Stellantis’ New CEO Faces Electric Transition Challenge

Leadership Change and Strategic Realignments at Stellantis

The automotive giant Stellantis is poised for a significant CEO transition. Antonio Filosa, an Italian native and a long-standing executive within the company (even before it was known as Stellantis), is set to take the helm on June 23. He steps in for Carlos Tavares, who resigned in early December, marking a new chapter for the automotive group during a period of profound industry-wide transformation. This leadership change occurs as Stellantis confronts the monumental task of navigating the shift towards electric cars, a challenge that will undoubtedly define Filosa’s tenure.

Carlos Tavares leaves behind a complex legacy, particularly marked by internal disagreements regarding the pace and nature of the electric transition. While Tavares was a vocal proponent of battery-powered mobility, some managers within Stellantis attributed unsatisfactory sales figures and economic results to the push for electric cars. This internal division highlights the delicate balance Antonio Filosa must strike between environmental commitments and financial sustainability.

The groundwork for a revised strategy has been laid by European manager Jean-Philippe Imparato and Chairman John Elkann. Their recent statements signal a nuanced approach:

• Jean-Philippe Imparato emphasized, “Don’t launch more cars, but have the right engines, developing especially hybrids and range extenders.” This suggests a pivot towards a broader powertrain portfolio rather than an exclusive focus on Battery Electric Vehicles (BEVs).
• John Elkann highlighted the priority to “accelerate the turnover, with varied and competitive technologies.” He pointed to the high average age of cars in Europe (12 years, and up to 17 in countries like Greece) as a reason why focusing solely on new zero-emission cars is “short-sighted.”

This pragmatic stance acknowledges market realities and consumer preferences, even as Stellantis navigates towards Europe’s contentious planned phase-out of gasoline and diesel cars by 2035. Filosa’s challenge will be to translate this vision into a successful operational strategy.

Navigating Production, Costs, and the Path to Electrification

A key component of Stellantis’s strategy involves reaffirming Italy’s central role in its operations. The “Italy Plan,” formalized at the end of 2024, includes a commitment to produce two new economic models in Pomigliano d’Arco (Naples) starting from 2028. These vehicles will be built on the versatile STLA Small platform, an architecture designed to accommodate a range of powertrains – from fully electric to traditional internal combustion engines (ICE) and hybrids. This flexibility underscores Stellantis’s current position: the future, at least for now, is not exclusively 100% battery-powered.

However, the path to electrification is fraught with challenges, notably concerning battery production. The planned gigafactory in Termoli, Molise – a project under the ACC (Automotive Cells Company) joint venture with Mercedes and TotalEnergies – is a critical piece of this puzzle. Slated to produce 40 GWh of batteries annually from 2026 after converting an existing engine and gearbox factory, work on the gigafactory has been stalled since June. Its future development hinges on the sales trajectory of electric cars, including those manufactured in Italy. Compounding these issues, Stellantis has scheduled production of dual-clutch automatic transmissions at the site for the upcoming year, suggesting a continued reliance on non-electric components in the near term.

The economic viability of producing EVs in Italy presents another significant hurdle. Stellantis Chairman John Elkann starkly pointed out in Parliament that “energy prices in European car-producing countries are five times higher than those in China.” Jean-Philippe Imparato further elaborated, stating that producing cars in Spain costs approximately €516 per vehicle, whereas in Italy, the figure balloons to €1,414 due to higher labor and energy costs. This cost differential makes manufacturing EVs profitably in Italy a daunting task. Consequently, a “key point of action” for Antonio Filosa will be to spearhead efforts to reduce electricity costs in Italy and across Europe. This must be achieved while simultaneously countering the growing influence of Chinese EV manufacturers and mitigating losses from U.S. tariff policies.

Stellantis’s Future Product Roadmap and Market Challenges

Product strategy will be central to Stellantis’s success under Antonio Filosa. While many upcoming models were developed under Tavares with an “electric-first” philosophy, they are increasingly being positioned as multi-energy vehicles capable of housing various powertrain types. This adaptability is crucial for navigating uncertain market demands and regulatory landscapes.

Looking at specific brands within the Stellantis portfolio:

• Alfa Romeo: The launch of the new Stelvio is anticipated, though potential delays loom. This model will be a key test of the brand’s appeal in the evolving premium SUV segment.
• Opel: Plans for sporty Opel models powered exclusively by electric motors are under review. The less-than-stellar success of a similar electric-only strategy for Abarth may prompt Filosa to reintroduce combustion engine options for these performance-oriented Opels.
• Maserati: The luxury brand has faced significant setbacks in its electrification journey. The electric MC20 supercar project was cancelled, and there have been postponements for the new Quattroporte, Ghibli, and Levante models. Revitalizing Maserati’s product line and electrification strategy will be a critical task.

These examples illustrate a complex puzzle of models and strategies across Stellantis’s diverse brand portfolio. Filosa’s leadership will be tested by his ability to piece these elements together cohesively, adapting to market feedback and technological advancements to breathe new life into the group. The road ahead is undoubtedly challenging, promising a busy tenure for the new CEO as he steers Stellantis through this era of transformation in the electric cars market and beyond.

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