Investors hoping for a Stellantis (NYSE: STLA) global turnaround were waiting for last Thursday, when CEO Antonio Filosa, after less than a year at the helm, detailed the automaker’s plans for the future during a full-day presentation.
There are six pillars to the plan, filled with strategies for 14 brands, for a total price tag of $70 billion spanning five years
The plan is complex, but the simplest part of the whole thing might be the most brilliant. Death of affordability If you haven’t felt the pain yourself, you surely have still heard from someone who has: The U.S. has an automotive affordability crisis. Rising new-car prices are one of the largest issues facing the U.S. automotive industry.
New vehicle average transaction prices (ATPs) have boomed from roughly $35,158 in 2016 to nearly $50,000 by the end of last year, according to data from Cox Automotive. Historically, ATPs have increased an average of 3.2% year over year, but the figure nearly tripled to 9% between 2020 and 2022. Just as important as the overall price tag is the brutal hit consumers are taking with monthly payments.