Finally, a Little Good News for Stellantis Investors

Key Points

• Stellantis discontinued the popular Jeep Cherokee two years ago.

• Newly appointed CEO Antonio Filosa has an array of problems to tackle.

• Stellantis needs a refreshed Jeep brand to help revive stagnating sales.

• 10 stocks we like better than Stellantis ›

To observers of the automotive industry, it might appear that Stellantis (NYSE: STLA) has been spinning its wheels and driving aimlessly. But its newly appointed CEO, Antonio Filosa, won over at least one fan in dealership owner David Kelleher when he bluntly admitted the automaker had been wrong to kill the Jeep Cherokee in 2023.

"I'm sure it wasn't his decision, [but] he took credit for it," Kelleher said in an Automotive News article recently. "At that moment, I'm like, 'This is the right guy.'"

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Admitting a mistake is often a difficult first step, and Filosa's humble ability to admit fault by the automaker will serve him well as he tries to give Stellantis direction and, yes, brings back the Jeep Cherokee.

Welcome back!

Filosa has a full plate trying to address spiraling sales along with the company's soured relationships with dealers, suppliers, and unions -- all of which deteriorated under former CEO Carlos Tavares.

Filosa also needs to right-size many of the automaker's 15 brands, as well as its joint venture with Chinese electric vehicle maker Leapmotor. Meanwhile, Stellantis is seen as the most vulnerable of the Detroit automakers to tariffs on imported vehicles and auto parts.

One big step toward fixing its stumbling brands would be to bring back the Cherokee and revitalize the Jeep brand, which is arguably the heart and soul of Stellantis.

Image source: Stellantis.

The Jeep Cherokee is returning this fall as a hybrid with a starting price of just under $37,000. The upcoming Cherokee will drive longer, taller, and wider, and Stellantis hopes the vehicle will be a big volume player in the midsize SUV segment. Sales of the model peaked at nearly 240,000 units in 2018.

Jeep makeover

"A few years ago, we left the largest segment in North America, a highly competitive segment where customers demand the best from their midsize" utility vehicles, Jeep CEO Bob Broderdorf said at an Aug. 7 media briefing, according to Automotive News. "We used that time to make sure we got the all-new Jeep Cherokee right, and that it delivers on everything we know our core customers and new customers are asking for: that means more standard equipment, more cargo space, more fuel economy and efficiency."

The Cherokee will be a crucial part of Jeep's ongoing makeover. It launched its first electric vehicle (EV) for North America with the Wagoneer S. Still on deck for this year alone are freshened versions of the Grand Cherokee and Grand Wagoneer, and the new Recon, which is a trail-focused EV inspired by the Wrangler.

It's a push the brand could use. A not-so-well-kept secret in the automotive industry is that SUVs and trucks cost only marginally more to produce than sedans, but carry far juicier margins and often haul the majority of a company's profitability. That said, Jeep doesn't have much momentum right now, but it's slowly gaining traction with a total sales increase of 1% during the second quarter, compared to the prior year, and a 6% gain over this year's first quarter. That ended a year-long streak of sales declines for Jeep.

What it all means

Amid the mounting problems facing Filosa and Stellantis, it's definitely good news for investors that the company so quickly admitted a mistake and is not only fixing it, but also refreshing the entire Jeep brand. That said, it's just one step in what looks like a steep climb for the automaker as it tries to unlock the potential in its whole catalog of brands -- a big-picture puzzle whose solution might even mean eliminating some of them.

For investors, right now, there are just too many uncertainties and problems to fix at the automaker for its stock to be a buy, but at least the turnaround efforts are starting to move in the right direction.

Should you invest $1,000 in Stellantis right now?

Before you buy stock in Stellantis, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stellantis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $654,759!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*

Now, it’s worth noting Stock Advisor’s total average return is 1,042% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.