Stellantis (NYSE: STLA ), moving into high gear with leadership refocusing the company's efforts on higher-margin business in hybrid and traditional internal combustion engine [ICE] vehicles, is investing heavily in the US auto market while slowing production across theMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services worki ...

Stellantis (NYSE: STLA ), moving into high gear with leadership refocusing the company's efforts on higher-margin business in hybrid and traditional internal combustion engine [ICE] vehicles, is investing heavily in the US auto market while slowing production across theMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services worki ...

Group 1 - Stellantis plans to invest approximately $10 billion in the United States [1]

Core Viewpoint - Stellantis NV plans to invest approximately $10 billion in the US to refocus on the market crucial for its profitability, particularly in the Jeep and Ram brands [1][2]. Investment Plans - The company may announce an additional $5 billion investment soon, complementing a similar amount allocated earlier this year [2]. - Investments will target plants in states like Illinois and Michigan, focusing on re-openings, hiring, and new models [2]. Brand Strategy - Stellantis aims to revive the Jeep brand's past success and is considering new investments in Dodge, potentially leading to a new Dodge V8 muscle car, and possibly Chrysler in the long term [3]. - Ongoing discussions indicate that the amount and specific projects may still change [3]. Leadership and Strategic Shift - The new spending strategy reflects the efforts of CEO Antonio Filosa, who took over in May, to recalibrate investments across regions [4]. - Under former CEO Carlos Tavares, the company had shifted production to lower-cost countries and invested heavily in Europe, where demand and profitability are low [4]. Future Evaluations - The CEO is leading a comprehensive evaluation of future investments as part of the company's strategy update and capital markets day planned for next year [5]. Industry Context - Stellantis' investment strategy aligns with broader trends among companies in various industries announcing significant investment plans in the US to gain favor with political leadership and mitigate tariff impacts [6].

Core Viewpoint - The automotive industry is experiencing a positive shift in stock prices due to potential tariff relief being considered by the Trump administration, which could significantly reduce costs for major car manufacturers in the U.S. [1][2] Group 1: Investment and Production Developments - General Motors is set to begin production at the renovated Detroit-Hamtramck assembly plant, following a $2.2 billion investment aimed at producing all-electric trucks and SUVs [1] - Ford shares reached a new 52-week high of $12.66, reflecting investor optimism amid potential tariff relief [4] Group 2: Market Reactions and Stock Performance - Shares of General Motors, Ford Motor, and Stellantis rose approximately 2% to 4% following reports of potential tariff changes [2] - Tesla's shares declined by about 2%, contrasting with gains seen by other automakers like Honda and Toyota [3] Group 3: Tariff Implications - The Trump administration's tariffs of 25% on imported vehicles and parts have been a significant concern for the automotive industry, leading to billions in increased costs [3] - Proposed changes may include extending a 3.75% tariff offset for five years and adding U.S. engine production to the relief, which could benefit major manufacturers like Ford, Toyota, Honda, Tesla, and GM [2]

Sales Performance - Stellantis' U S sales increased by 6% in Q3 [1] - The increase marks a rebound from eight consecutive quarters of sales declines for the automaker [1]

Core Insights - Stellantis reported a 6% increase in U.S. sales in the third quarter, totaling 324,825 vehicles, ending a streak of eight consecutive quarters of declining sales [2][7] - Jeep Wagoneer sales surged by 122%, while Chrysler and Ram brands also saw significant increases, indicating a positive trend for Stellantis under new leadership [1][5] Sales Performance - Total U.S. sales rose to 324,825 vehicles, marking a 6% increase from the previous year [2][7] - September sales alone jumped 16% year-over-year, achieving the highest monthly market share in the U.S. in 15 months [2][3] - Chrysler sales increased by 45%, driven by the Pacifica and Voyager models, while Ram sales rose by 26% due to the popularity of the Ram 1500 with the HEMI V-8 engine [5] Market Reaction - Stellantis shares increased nearly 9%, reaching their highest level since May, although the stock is down 20% since the start of 2025 and has lost about two-thirds of its value since March 2024 [4][3] - The positive sales figures suggest a potential rebound for Stellantis under CEO Antonio Filosa, who took over in June [3][4] Challenges Ahead - Despite the positive sales momentum, Stellantis still faces risks related to tariffs and intense competition in the automotive market [3]

Market Overview - US stock index futures showed mixed performance ahead of the market opening, with Dow futures down 0.02%, S&P 500 futures up 0.25%, and Nasdaq futures up 0.49% [1] - European indices also experienced gains, with Germany's DAX up 1.27%, UK's FTSE 100 up 0.04%, France's CAC40 up 1.41%, and the Euro Stoxx 50 up 1.52% [2][3] Oil Prices - WTI crude oil prices fell by 0.42% to $61.52 per barrel, while Brent crude oil prices decreased by 0.44% to $65.06 per barrel [3][4] Employment Data - The ADP employment report indicated a surprising decrease of 32,000 jobs in September, contrasting with Wall Street's expectation of an increase of 45,000, suggesting a significant deterioration in the US job market [5] - The September manufacturing PMI in the US recorded at 49.1, indicating continued contraction for the seventh consecutive month, although the output index returned to expansion at 51 [6] Layoff Statistics - US employers announced 54,064 layoffs in September, a decrease of 37% from August and a 26% drop from the same month last year, with year-to-date layoffs totaling 946,426, the highest since 2020 [7] Federal Reserve Insights - FOMC member Goolsbee noted that the government shutdown complicates the Federal Reserve's ability to interpret economic conditions due to a lack of official data [8] EU Trade Policy - The EU plans to significantly increase steel import tariffs to 50% to protect its domestic steel industry, aligning its tariff levels with those of the US [8] Investment Trends - Goldman Sachs remains bullish on gold, citing strong interest from private investors, with expectations that gold prices could rise to $4,300 per ounce by the end of next year [9] Corporate Developments - AMD is reportedly in talks with Intel for potential chip manufacturing collaboration, which could significantly enhance Intel's foundry business [10] - Berkshire Hathaway announced a $9.7 billion acquisition of Occidental Petroleum's chemical division, marking a significant transaction for the company [10] - Stellantis reported a 6% increase in third-quarter vehicle sales in the US, reaching 324,825 units, with notable growth in Jeep and Chrysler brands [11]

Group 1: Market Performance - French stocks are experiencing a positive trend, with the benchmark CAC 40 reaching a six-month high at 8,060.52, up 93.57 points or 1.17% [1] - The rise in the CAC 40 is attributed to strong buying in the auto sector and easing concerns about a potential U.S. government shutdown [1] Group 2: Company-Specific Developments - Stellantis shares increased by 7.1% following stronger than expected U.S. sales figures, alleviating concerns over potential tariff impacts on demand [2] - Morgan Stanley noted a turnaround in Stellantis' market share, with U.S. sales momentum strengthening in September [2] - Other companies such as Thales, LVMH, Renault, and Airbus also saw gains ranging from 1.4% to 4.2% [2] - Worldline shares surged by 9.3% after announcing a strategic partnership with YeePay, a Chinese payment provider in the airline and travel sector [3] - Companies like Capgemini, Michelin, Societe Generale, and Accor also reported impressive gains [3] Group 3: Economic Indicators - Euro Area's seasonally adjusted unemployment rate rose to 6.3% in August from a record low of 6.2% in July, indicating a slight increase in unemployment [4]

Stellantis is mulling a potential sale of its car-sharing business Free2move as its CEO looks to turn around the ailing automaker https://t.co/Gcq9r9pGu9 ...