Stellantis CFO Says Automaker Needs “To Build Back Trust”

Ostermann Outlines Steps To Restore Confidence Among Stakeholders and Boost Profitability...

Robert S. Miller December 5, 2024

Stellantis Mirafiori Assembly Complex in Turin, Italy. (Stellantis).

Stellantis is taking steps to restore trust among its key stakeholders after a leadership shakeup. Following the departure of former Chief Executive Officer (CEO) Carlos Tavares, Chief Financial Officer (CFO) Doug Ostermann shared the company’s focus on mending relationships with dealers, suppliers, unions, and governments.

Speaking at a Goldman Sachs conference in London, Ostermann revealed that tensions between Tavares and the Stellantis board had escalated over the company’s long-term direction. “We need to build back trust,” Ostermann said, expressing confidence in Stellantis’ ability to achieve stronger margins next year while rewarding investors with a dividend.

Optimistic Outlook for 2025 –

Jeep® Wagoneer S Trailhawk Concept hints at a future Cherokee model. (Jeep).

Ostermann emphasized that Stellantis is ahead of schedule in addressing bloated inventories in the U.S., a move expected to bolster profitability. The automaker is betting big on new products, including a new D-segment Jeep® Cherokee and refreshed models across its lineup.

“I feel strongly that we will have a dividend,” Ostermann noted, hinting at potential stock buybacks given Stellantis’ current valuation. The company’s stock rose 2% on Wednesday but remains down 45% year-to-date, underperforming compared to broader market trends.

Challenges in Key Markets –

2025 Jeep® Wrangler Unlimited Rubicon X 4xe. (Jeep).

Despite optimism, Stellantis faces challenges on multiple fronts. In Europe, the company must contend with excess production capacity and declining demand for electric vehicles as Chinese manufacturers ramp up competition. Meanwhile, the U.S. market presents an opportunity to recover sales, but only with strategic product launches and inventory management.

Maserati’s Italian Future –

2024 GranTurismo PrimaSerie 75th Anniversary Launch Edition. (Maserati).

Chairman John Elkann has also stepped in to stabilize operations. Recently, Elkann visited Stellantis’ Maserati facility in Modena, Italy, where concerns have risen about the luxury brand’s future due to declining production. Stellantis reassured stakeholders that all current and future Maserati models will remain 100% Italian-made, aiming to elevate the brand within the premium segment.

Strategic Vision Remains Intact –

2024 Dodge Charger Daytona Scat Pack Stage 2 First Edition. (Dodge).

While there were disagreements over immediate priorities, Ostermann clarified that Tavares and the board aligned on long-term strategies, such as expanding into Latin America and maintaining an asset-light approach in China.

As the search for a new CEO continues, Stellantis remains committed to rebuilding trust and delivering improved financial performance. With strong products in the pipeline and a focus on stakeholder collaboration, the company aims to regain its footing in the competitive automotive industry.

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bill burke Dec 06, 2024 #1

I don’t pretend to be a trained or skilled business executive but I offer my best thinking when I comment. Individuals judge those comments, hopefully with respect. Here I go, again.
I have stated, repeatedly here that job one for Stellantis is build quality which builds confidence and trust in product. The biggest sin by Tavares was poor judgement in excessive cost cutting and use of poorly manufactured and cheaper parts. My 2019 Dodge Challenger and Jeep Cherokees are well built, reliable, trouble free and satisfying. What happened guys? What appears to me as being built by Dodge and Jeep gives me reservations about buying anything right now from Stellantis. I’m keeping my current cars hoping for better days. Millions of potential buyers are likely doing the same thing. The electric hoax has wasted billions that could have gone into these current shabby vehicles. Wasted on a political false agenda, we now have a job one made much more difficult by these poor decisions. Crap in crap out.
Perhaps my thoughts are shallow or inadequate in this business environment, but I bet my job one is really job one. Start there. Judge this comment as you see fit.

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