Why This Forgotten Global Automaker Could Outperform Rivals Over the Next 5 Years
2026-07-23 00:05
•Daniel Miller •The Motley Fool
•• ••••••• Axe Capital view
Why South African Investors Should Watch the Global Auto Turnaround in Stellantis
Stellantis’s bold U.S.-focused strategy has revived its shipments and hints at potential gains over automaker peers—worth a look through the rand lens.
Global auto stocks are a mixed bag, but Stellantis deserves a second glance from South African investors. Despite a punishing 70% drop over three years, the company’s $70 billion turnaround focusing mostly on its profitable Jeep and Ram brands in North America is paying off. Q2 shipment growth of 38% is no small feat, suggesting demand is firming. For JSE investors, direct exposure is limited, but the rand’s sensitivity to global manufacturing cycles and commodity-linked currencies means the broader industrial sector could feel the ripple. Local auto-related plays like Barloworld and Motus might experience indirect benefits if global production improves. The catch is the sizable North American focus—if the U.S. market softens or supply chains get tighter again, this recovery could stall. Still, Stellantis’s valuation below emerging EV rival Rivian looks like an opportunity handed to patient investors. this is just my opinion and not financial advice
Watch Stellantis on the global stage but lean towards South African industrial counters like Barloworld and Motus for indirect exposure. Stay flexible, trimming if U.S. auto demand falters or if the rand weakens sharply.
- STLA
- Barloworld
- Motus
- USD/ZAR
- U.S. economic slowdown hitting auto demand
- Renewed global supply chain disruptions
6/10
Stellantis stock has declined 70% over three years and now trades below Rivian despite being a global automaker with millions in annual shipments. However, the company's $70 billion turnaround strategy, focusing 60% of spending on North America and investing heavily in profitable Jeep and Ram brands, shows early signs of success with 38% shipment growth in Q2. Analysts believe the stock could outperform rivals GM and Ford over the next 3-5 years as new product launches gain traction.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Daniel Miller
Categories: Autos, Equities
Tickers: STLA, GM, F, FPB, FPC, FPD, RIVN
Sentiment: Mixed - Despite significant past decline, early evidence of turnaround with 38% Q2 shipment growth in North America, strong $70 billion strategic plan with focus on profitable trucks/SUVs, and new product launches showing market traction. Stock appears oversold and undervalued relative to fundamentals. Stock has performed well with 100% gain over three years and currently thriving, but article suggests Stellantis could outperform GM over next 3-5 years, implying GM may face relative underperformance.
Keywords: automotive turnaround, North America market, Jeep and Ram brands, stock valuation, EV competition, product launches, market share recovery
Insights:
- STLA: Positive: Despite significant past decline, early evidence of turnaround with 38% Q2 shipment growth in North America, strong $70 billion strategic plan with focus on profitable trucks/SUVs, and new product launches showing market traction. Stock appears oversold and undervalued relative to fundamentals.
- GM: Neutral: Stock has performed well with 100% gain over three years and currently thriving, but article suggests Stellantis could outperform GM over next 3-5 years, implying GM may face relative underperformance.
- F: Neutral: Stock has remained flat over three years. Article positions it as a comparison point but suggests Stellantis turnaround could outperform Ford going forward.