DETROIT — “Mediocrity is not worth the trip.” This phrase encapsulates the vision of Antonio Filosa, the newly appointed CEO of Stellantis, who shared this message publicly for the first time following his promotion. His journey to this leadership role spans 25 years, beginning as a night shift paint shop supervisor in Spain.
The sentiment expressed by Filosa also serves as a tribute to the late Sergio Marchionne, former CEO of Fiat Chrysler, who mentored him and remains a central figure revered within the company. Marchionne’s untimely passing in 2018 occurred before the merger that formed Stellantis, which includes brands like Jeep, Ram, Fiat, and Chrysler.
Current and former Stellantis executives, along with employees who have partnered with Filosa, emphasize his connection to Marchionne, portraying him as a collaborative and personable leader who possesses comprehensive knowledge of the automotive business, from the manufacturing floor to executive suites. However, Filosa is expected to confront a series of significant challenges as he takes on the CEO position.
Filosa officially begins his duties on Monday, a role that requires him to embody the dynamic spirit of Marchionne, who was known for his transformative leadership that revived Fiat and Chrysler. Success in restoring Stellantis’ reputation and performance will be critical.
The recent departure of Carlos Tavares, the former CEO who led the Stellantis merger, has created a vacuum. His resignation in December followed tensions with the board and the impact of declining sales and profits—Stellantis reported a staggering 70% reduction in net profit last year. While Tavares was regarded as a bold leader, there were concerns that his intense focus on cost-cutting adversely affected the company’s overall health.
Industry analysts suggest that Filosa’s immediate goals will include rebuilding relationships with dealers, employees, and politicians, which suffered during Tavares’ leadership, while also balancing the company’s investments between conventional vehicles and newer electrified models, including hybrids and electric vehicles.
As he noted then, the transition toward electric vehicles must be managed carefully. “It’s no secret that electric vehicles will be a significant part of the future, not just for Stellantis but for the entire automotive industry,” he stated earlier this year. “The pace and speed of this transition might require reassessment.”
Filosa described the challenges facing the new CEO as a “multitask challenge,” a phrase that epitomizes the complexity of the tasks ahead.
‘Multitask challenge’
At 51, Filosa is considered a relatively young leader and has moved quickly into the role after Tavares elevated him from CEO of Jeep to chief operating officer of Stellantis’ Americas operations. In this capacity, he sought to repair the fractured relationships created during Tavares’s regime.
Employees expressed frustration over job cuts and layoffs, while dealerships reacted strongly against the brand’s declining sales and market share, culminating in an open letter from the Stellantis National Dealership Council criticizing Tavares’ policies.
“Your own distribution network, your dealer body, has been left in an anemic and diminished state,” Kevin Farrish, a dealer from Virginia, wrote in the letter.
Michael Bettenhausen, a dealer in Illinois, noted that while they are hopeful for Filosa, much work remains to be done.
“We need to work collaboratively on all the issues here in the North American operations, and we look forward to Antonio being involved in those discussions,” he remarked.
Stellantis’ global sales under Tavares decreased by 12.3% from 6.5 million in 2021 to approximately 5.7 million in 2024. This decline included a sharp 27% drop in the United States, where sales plummeted to 1.3 million vehicles, causing the company to fall from fourth to sixth place in U.S. sales rankings and reducing its market share from 11.6% to 8% in that timeframe.
Filosa, who hails from Naples, Italy, has indicated that capturing greater retail market share in the U.S. is crucial. “We need to do that. It’s not just a belief; it’s a necessity,” he stressed. “The U.S. retail market share is essential to our organic growth.”
Yet the company is grappling with a product shortage, contributing to an overall sales decline of roughly 12% in the first quarter of this year compared to the same period last year. Stellantis has withheld its year-to-date retail sales figures.
Despite these challenges, the introduction of new models like the revamped Jeep Cherokee, additional versions of the Ram 1500 pickup, and a new gas-powered Dodge Charger is anticipated to reinvigorate sales and the company’s overall performance.
While Stellantis’ revenue rose since the company’s formation, it dramatically fell by 17.2% year-over-year in 2024 to 156.9 billion euros ($180.6 billion), contrasting with the growth enjoyed by competitors such as General Motors and Ford.
“Filosa steps into the CEO role amid significant challenges for the company,” RBC Capital Markets analyst Tom Narayan noted in a recent report. “His immediate focus must be on revitalizing performance in the U.S. market, optimizing Stellantis’ diverse 14-brand portfolio, and restoring relationships with dealers, unions, and government entities.”
‘A logical choice’
Filosa’s rise to the CEO position has been characterized as a sensible and pragmatic move during a time when the company needs to mend various self-inflicted crises along with navigating regulatory uncertainties and global economic challenges, according to industry experts.
“It seems like a logical, credible appointment,” Tavares commented to Bloomberg in late May, his first interview since leaving Stellantis. “Hopefully, he will receive the necessary support from the board. We will have to wait and see.”
Since being confirmed as CEO on May 28, Filosa has visited several Stellantis plants across the U.S., Canada, and Europe. His selection reportedly followed a six-month search involving various candidates from both within and outside the company.
Filosa has expressed deep gratitude and humility about his new role, describing Stellantis as his “home” for the past 25 years. “It is in my blood,” he wrote in a LinkedIn post on May 28, honoring the legacy of Marchionne.
Many current and former Stellantis executives describe Filosa as an approachable and attentive leader who easily connects with employees—aptly mirroring Marchionne’s engaging style.
“I’ve collaborated closely with him. … We have grown under Sergio,” Ralph Gilles, Stellantis’ global head of design, told Finance Newso. “He is personable, visionary, energized, young, curious, and a great listener. I admire his problem-solving abilities and his passion for design.”
Marchionne famously referred to his executives as “kids,” mentoring many, including Filosa, Gilles, and others still with Stellantis like Ram CEO Tim Kuniskis and Chief Marketing Officer Olivier Francois.
“Antonio is great,” Kuniskis shared, remarking on how Filosa’s leadership motivated his return after a brief hiatus.
Also, Stellantis CFO Douglas Ostermann praised Filosa for his experience in manufacturing and fostering the company’s Latin American market, which has been a consistently profitable region.
However, upon Filosa’s appointment, analysts from Bernstein expressed that while he may be a “safe pair of hands,” he lacks the same level of compelling appeal for investors as some outside candidates, such as ex-Apple CFO Luca Maestri, who was considered for the role.
“Investors were excited by the prospect of an outside hire after such significant turmoil,” Bernstein analyst Daniel Roeska told Finance Newso. “The view was that fresh leadership could bring a new perspective.”
Investor reaction to Filosa’s appointment has been subdued, reflected in the company’s stock performance. Following the announcement on May 28, shares of Stellantis declined by 3.2%, and they have since dropped approximately 10%, influenced by various external factors.
This trend mirrors the stock’s performance during Marchionne’s tenure when he voiced similar sentiments about mediocrity at an investor day shortly after the merger of Chrysler and Fiat in 2014; shares dipped by 3.9% that day.
During his tenure, Marchionne, known for his insightful remarks, discussed the challenges facing the automotive sector and the necessity of avoiding unprofitability—issues Filosa and Stellantis must continue to tackle. “Our culture thrives when faced with purpose and challenge,” Marchionne had said. “And our plan holds purpose because, in the end, mediocrity is not worth the trip.”
