Stellantis shares rebound but remain below technical resistance at €4.20

Stellantis (STLA) plans a $1.16B investment in its French van manufacturing plant, part of a €60B five-year plan to boost growth and profitability. The company aims to improve efficiency, bring processes in-house, and enhance R&D. CEO Antonio Filosa has announced new models and cost-saving measures. Stellantis also faces competition from Chinese EV manufacturers and reported Q2 net income of €293M, below estimates.

Stellantis (STLA) is recalling 201,976 Jeep vehicles in the U.S. due to a software error affecting tire-pressure monitoring. The recall follows several other large recalls this year. Stellantis reported Q2 net profit of €293M and revenue of €43.5B, with strong North American demand. The company aims to address the issue via a software update, minimizing financial impact. However, recurring safety issues may raise regulatory and quality-control concerns.

Ally Financial reaffirmed its 2026 retail auto net charge-off guidance of 1.8% to 2%. The company expects lease pressure from Stellantis to ease after 2026 due to diversification. Ally anticipates used-vehicle prices to remain supported, and plans to maintain disciplined deposit pricing. The company also reported 7% year-over-year growth in deposit customer accounts, driven by millennial and Gen Z consumers.

Unifor secured a $1B investment from Ford for Canadian plants, including $500M for Essex Engine and $400M for Oakville Assembly. The union now seeks similar commitments from GM and Stellantis. Ford's deal includes wage hikes, bonuses, and job opportunities. Unifor plans to start GM talks on August 10.

Volkswagen's shares dropped 7.5% after cutting its operating-margin forecast due to a Porsche write-down and weak Chinese demand. US auto groups, including Ford and GM members, urged Trump to maintain restrictions on Chinese BYD vehicles. GM shares fell 5%, Ford 4%, and Stellantis 5% in US markets.

Stellantis (STLA) stock fell 4% Friday amid broader market weakness and pressure on automakers. The decline followed reports of a request to block Chinese automakers from U.S. manufacturing. STLA trades below key moving averages, with analysts holding a Hold consensus and a $6 price target. Shares were at $4.84 at publication.