The shares of the US automotive group Stellantis fell by 3.8% in European trading on Friday and have recorded a decline of 45% so far this year. The loss in value followed immediately after the announcement of a comprehensive leadership change, just a few days after the company had lowered its full-year profit forecast.

Stellantis, which includes brands like Jeep, Ram, Chrysler, Fiat, and Peugeot, reported a 7.1% decline in sales to 2.2 million vehicles delivered in the third quarter. The Chinese market was particularly affected, with deliveries down by 15%. Marco Schubert, member of the Stellantis board, stated: "The competitive situation in China is particularly intense, which is the main reason for the global decline in our deliveries.

The declining sales in China result from aggressive price discounts by competitors, who are introducing new models at low prices to gain market share. Stellantis is sticking to its pricing strategy to secure the necessary profits for technological investments, which, however, complicates competitiveness in the price environment.

As part of the leadership change, the current Chief Executive, Carlos Tavares, will step down at the end of his contract in the spring of 2026. In addition, the Chief Financial Officer and the Chief Operating Officer for North America will also resign. According to Stellantis, these measures are intended to set the course for a turnaround, but analysts remain skeptical.

Bernstein analysts criticized that the leadership changes do not address Stellantis' immediate challenges. "The company needs to reduce excess inventory, increase profitability in the USA, and tackle strategic challenges in the EU," said one analyst. The current changes do not offer clear answers to these problems.

Specifically, US dealers of the Jeep and Ram brands complained about excessive vehicle inventories caused by aggressive production targets and high list prices. These concerns were largely ignored by Stellantis for nearly a year, leading to a loss of trust among investors. 'The company lost significant trust when it revised its profit forecast downward in September,' commented the Bernstein analysts.

In addition to the internal challenges, Stellantis is also facing an escalating trade war with China. The EU plans tariffs of up to 45% on electric vehicles manufactured in China, which could further increase costs for European manufacturers. These geopolitical tensions complicate the already difficult market position of Stellantis.

With the ongoing pricing issues and high production costs, the future of Stellantis remains uncertain. The upcoming leadership change might provide strategic impetus, but the fundamental market problems remain unsolved.