Stellantis aims to cut annual costs by €6 billion by 2028 compared with its 2025 baseline, making the Value Creation Program one of the central pillars of the FaSTLAne 2030 strategy. The company plans to find savings across components, manufacturing, quality, logistics and indirect costs.
Stellantis targets €6 billion in annual cost cuts under Filosa’s new plan
The €2.4 billion figure associated with the early phase of the program does not represent savings Stellantis expects to fully record in 2026. CEO Antonio Filosa explained that around 40% of the initiatives already identified should begin generating benefits by the end of this year. Their full-year impact should then reach approximately €2.4 billion in 2027, equivalent to 40% of the €6 billion target.
The program does not rely on a single restructuring measure. Nearly 3,000 employees across Stellantis have already worked on thousands of individual initiatives, some capable of generating more than €10 million in recurring adjusted operating income.
Component costs represent the largest opportunity. Stellantis says parts account for roughly 75% of the cost of a new vehicle, and teams from engineering, purchasing, finance and cost engineering are reviewing designs and benchmarking alternatives. The company intends to analyze more than 80% of its component cost base across North America and Europe during 2026.
Manufacturing provides another major area for savings. Better capacity utilization, more efficient assembly processes and lower production costs per vehicle could improve margins, while higher quality should reduce warranty expenses and repairs after vehicles leave the factory.
Logistics and indirect expenses also form part of the plan. Stellantis can reduce costs through more efficient transportation routes, inventory management and internal processes, although the company has not detailed specific warehouse closures or consolidation plans.
The potential impact on employment remains unclear. Stellantis has not connected the €6 billion target to a company-wide workforce reduction plan. Other automakers, including Volkswagen, are pursuing substantial job cuts as part of their own cost-reduction programs, but Stellantis has not announced a comparable strategy.
The first meaningful financial test will come in 2027, when the initiatives launched during 2026 should deliver approximately €2.4 billion of annual impact. Stellantis then expects the full Value Creation Program to reach its €6 billion annual run rate in 2028, helping the company target a 5% adjusted operating income margin that year.