(Alliance News) - The parabola of Stellantis, once lauded for the successful merger between Fiat-Chrysler and Peugeot, is a sign of the challenges facing the global automotive industry, Corriere della Sera wrote Monday in its L'Economia supplement.

After an all-time high on the stock market in 2023, with EUR80.00 billion in capitalization and a EUR3.00 billion buyback, the company has lost value, falling below EUR35.00 billion on the stock market, aided by the stagnant European market, difficulties in the U.S. and slowing sales of electric cars. The resignation of CEO Carlos Tavares accentuated the uncertainty.

European automakers, such as Volkswagen, Bmw and Mercedes, are particularly vulnerable to the shrinking Chinese market, from which more than 30 percent of sales are derived. For Stellantis, which has only 1.0 percent of its deliveries in China, the backlash is less, but the industry remains under pressure from protectionist policies from both Beijing and the possible return of Donald Trump, who could impose 25 percent tariffs on imports from Mexico and Canada.

In Europe, economic stagnation and declining registrations, especially of electric cars, which have fallen below 15 percent of the market, put electrification plans at risk and could lead to fines for missing emission targets by 2025. However, manufacturers such as Renault and Hyundai are benefiting from their technological leadership in electric.

The global industry faces unprecedented challenges, including green transition, protectionist policies, and changes in consumption, but the road to electric appears to be well on its way, as evidenced by Tesla's successes, valued more than all European automakers combined.

By Antonio Di Giorgio, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.