Heightened Uncertainty Will Continue to Weigh on Stellantis' Share Performance

Former Stellantis CEO Carlos Tavares launched the company’s DARE 2030 strategy in 2022, which focused on delivering double-digit operating margins and making the firm the most profitable automotive original equipment manufacturer globally. At end-2023, Stellantis had an impressive EUR 8.4 billion in net cash synergies versus the EUR 5 billion it set out to achieve at the time of the merger. Adjusted operating margins were maintained at double digits for three consecutive years. The strategy initially seemed to be working, although we questioned the maintainability of spending ratios that had lower benchmarks than peers.