As though things were not confused enough for legacy automaker Stellantis (STLA) as things sat, now, the United States government—which is about to shift hands in a very big way in a matter of weeks—is looking for a seismic shift. Upcoming Senator from Ohio Bernie Moreno—a car dealer himself—says that Stellantis should divest itself of its American brands. Investors seemed to like the idea, and shares popped up fractionally in Friday afternoon’s trading.
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Moreno, recently elected in Ohio, called for Stellantis to get rid of its Chrysler, Dodge, Jeep and Ram brands and return them to American producers. Moreno declared that the brands in question had been “grossly mismanaged,” noted a Bloomberg report, and should be returned to an American company. Moreno declared that Stellantis had been “…a terrible steward of the brands,” and that Stellantis should “…spin…off Chrysler Corporation and put…it back in American ownership.”
Stellantis, meanwhile, was not taking this notion lying down, declaring in a statement: “With nearly 100 years of history in the US, the iconic brands of Chrysler, Dodge, Jeep and Ram are at the heart of Stellantis’ strategy. Together with our partners and stakeholders, we will continue building Stellantis as the automotive company of the future.”
Was That a Hemi?
But then, further revelation emerged from Stellantis that would likely leave concerned readers on the back foot once more, as Stellantis was considering killing off the entire Hemi concept. Autoblog noted that Carlos Tavares was looking to kill off the Hemi V8 engine from its product line as a cost-saving move.
It was considered one of Tavares’ “most contentious decisions,” Autoblog noted, and served as part of the “Dare Forward 2030” plan which saw the brands focus on more green and outright electric vehicles. But customers felt slighted by the loss, and employees were not pleased either, making it a move that may have done more harm than good, ultimately. Many believed that the Euro-centric decision to drop Hemi simply “…ignored local market realities,” and based on Bernie Moreno’s stance, they might have been right.
Is Stellantis Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on STLA stock based on seven Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 41.17% loss in its share price over the past year, the average STLA price target of $14.88 per share implies 15.39% upside potential.
