The promised turnaround at Stellantis all but sputtered out during the first quarter as sales in the U.S. dropped by double digits. With the search for a new CEO still ongoing, the Euro-American automaker struggles to find its direction, reports Headlight.News.
Stellantis has yet to find a replacement for CEO Carlos Tavares.
Stellantis is promising 2025 will be a turnaround year, but a 12% drop in deliveries for the first three months of the year suggest the beleaguered automaker is still mired in muck.
The fall-off in Stellaris sales came even as key rivals, including General Motors, Hyundai and Toyota reported solid first-quarter gains as buyers move to purchase new vehicles ahead of the imposition of steep tariffs by President Donald Trump.
The first quarter was promised by Stellantis to bring new momentum. But it’s unclear when that will happen, especially with many analysts forecasting a sharp downturn in sales and earnings will follow the enactment of the Trump tariffs.
Stellantis struggles in rugged environment
Jeep’s Wagoneer S EV was months late to market,
Stellantis sales tumbled in 2024 after a series of ill-advised price increases, unfocused marketing efforts and rising competition. Especially hard-hit were its Ram and Jeep brands, the latter facing challenges from other off-roaders, such as Ford’s Bronco line. The launch of critical models, such as the next-generation Ram pickup truck, as well as the Jeep Wagoneer, the most expensive vehicle in the company’s line-up, didn’t live up to expectations, And the Alfa-Romeo brand has yet to gain traction in the U.S.
The sales drop also comes at a time when the company faces other challenges such as the restructuring of the company’s top management in the wake of the sudden and chaotic departure of CEO Carlos Tavares in December.
John Elkann, the leader of Agnelli clan, which is Stellantis single largest shareholder, has stepped into the leadership vacuum from his role as the chairman of the board. But the company’s operational direction has been rudderless, many analysts complained, amid the growing friction over trade between the U.S. and its various allies.
Stellantis’, North American business, FCA US LLC, is particularly vulnerable in the trade dispute because its production base includes plants in the United States, Canada and Mexico.
Signs of sales turnaround emerge
The Ram 1500 is beginning to pick up momentum after a slow launch.
Despite the drop in sales during the first quarter, FCA US officials insisted there were some green shoots in the first quarter numbers.
While overall sales for the three-month period decreased 12% year over year, the retail numbers remained level – though they still trailed increases posted by rivals like General Motors and Ford.
Ram brand U.S. retail sales increased 16% year over year, while Jeep brand U.S. retail sales increased 2% year over year.
“We’ve seen consecutive monthly market share growth since January, in addition to retail growth momentum, with the right mix of pricing and incentive actions put in place at the end of last year, leading both Jeep and Ram brands to post their best retail months of the year this March,” said Jeff Kommor, head of U.S. sales.
“Additionally, our company year-over-year retail sales were up by 13.8% when disallowing for discontinued models, and we expect to see this gap corrected as our new model offerings continue to fill out our growing U.S. brand portfolios,” Kommor added.
More Stellantis News
- Stellantis Says: Quit Your Job, Get a Check
- Departure of CEO Tavares Leaves Stellantis Rudderless
- Management Shake-Up Brings Back Some Former Execs
Fiat gains momentum
The Fiat 500e.
If there was any really positive surprise, the Fiat brand saw total U.S. sales in the first quarter increase 239% year over year, driven by strong momentum of the all-electric Fiat 500e.
The EV was named Urban Green Car of the Year for 2025 by Green Car Journal, Newsweek Top Pick Urban Car and Vincentric Best Value in America in the subcompact category
At this month’s New York Auto Show, the brand will reveal a new trim for the 500e. But total U.S. sales for the Fiat brand are far too modest to make any real difference in the parent company’s overall performance.
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