New Stellantis CEO Antonio Filosa prioritizes vehicle sales growth over profits, focusing on lower-margin fleet sales and investing in affordable models to regain market share in North America and Europe. Previous CEO’s cost-cutting led to customer exodus and a 15% sales drop in the U.S. Filosa aims to exceed low analyst expectations this year, with early signs of success as North America sales rose 6% in Q3.

Filosa’s strategy includes resorting to U.S. fleet sales, investing in popular Jeep and Ram models, and re-evaluating the viability of Stellantis’ 14 brands. The company plans to drop ambitious EV sales targets and focus on popular models to recapture lost market share. Stellantis aims for sustainable sales growth, rebuilding credibility with customers, investors, and dealers.

Stellantis is sacrificing short-term margins to invest in better products and boost sales, with a $13 billion investment in the U.S. market. Major investors support this approach, willing to give Filosa time to implement a long-term strategy. The company aims for a 6%-8% margin on adjusted operating income in the mid-long term, with expectations of low single-digit margins this year.

With a focus on popular Jeep brands and affordability, Filosa is reshaping Stellantis’ leadership, promoting trusted managers and hiring new talent. The company is using corporate fleet sales to rebuild volumes and keep plants running, with a goal to regain lost market share in the U.S. and Europe. The next few months will be critical to Stellantis’ long-term viability and success.

Read more at Yahoo Finance: Inside Stellantis CEO’s ’emergency room’ rush to recapture market share