Key Points

• Stellantis has faced adversity, and its stock is down 56% over the past year.

• Newly appointed CEO Antonio Filosa has to mend relationships with dealers and suppliers.

• Stellantis is often pegged as the most vulnerable to tariffs of the Detroit Big Three.

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Shares of Stellantis (NYSE: STLA) have been consistent; unfortunately, over the past year the shares have consistently declined -- shedding roughly 56% of their value. The automaker's former CEO Carlos Tavares was clashing with the board of directors, and dealers were frustrated and struggling to move inventory. The United Auto Workers union carried out a public campaign to have Tavares fired, and he soon resigned.

With freshly anointed CEO Antonio Filosa taking over, is it time for investors to jump in and scoop up shares on the cheap?

Repairs required

By the time former CEO Tavares resigned, Stellantis' relationship with its dealers, suppliers, and unionized employees had been severely strained -- something Filosa will have to mend. Let's take a closer look at the challenge with dealers.

The rift developed when dealers accused Tavares of chasing short-term profits, and due to mismanagement created by the merger of Fiat Chrysler Automobiles and PSA Group in 2021. But it really boiled down to one side wanting to drastically cut costs, and the other side wanting larger incentives to help push product off dealership lots.

Beyond dealerships, Stellantis has had legal battles with suppliers regarding pricing, among other issues, marking another entity Filosa will have to mend relationships with. The relationships need quite a bit of work, too, so it won't be an easy or quick fix. In fact, the rocky relationship with suppliers has been a trend: Stellantis received the lowest score out of the six automakers rated by Plante Moran's annual supplier survey for the fifth consecutive year.

Time to cut fat?

Another "gift" left for Filosa to navigate will be choosing brands to pour capital into now. When Stellantis formed in 2021, Tavares announced that each brand would have a 10-year window to execute business plans, but later walked that back by saying performance could be reviewed as early as 2026.

"You have to rip the Band-Aid off and pick and choose which of your brands are going to survive," said Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, per Automotive News. "Tavares giving them 10 years basically pushed the decision down the road to his successor, because there was no way he was going to be around."