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    Philippe Houchois • Jefferies

    Philippe Houchois's questions to Stellantis NV (STLA) leadership

    Philippe Houchois's questions to Stellantis NV (STLA) leadership • Q2 2025

    Question

    Philippe Houchois from Jefferies questioned the H2 free cash flow guidance, asking if the guided 'improvement' would be enough to offset the H1 outflow and why management seemed reluctant to guide on working capital. He also asked about the launch timing for new Ram models.

    Answer

    CEO Antonio Filosa explained the guidance reflects a significant acceleration from a breakeven H1, which must also absorb a heavy €1.2B tariff impact in H2. CFO Doug Ostermann added that forecasting is difficult amid external volatility. On product timing, Mr. Filosa stated that the new Ram V8 and Express models are expected to arrive in dealerships during Q4 2025.

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    Philippe Houchois's questions to Stellantis NV (STLA) leadership • Q2 2025

    Question

    Philippe Houchois questioned the significant gap between operating cash flow and industrial free cash flow, suggesting separate reporting for industrial and financing activities. He also asked what specific actions Stellantis is taking to regain fleet market share, particularly for the Ram brand.

    Answer

    CFO Doug Ostermann clarified that the operating cash flow figure includes the financial services business, which consumed over $4 billion in capital for its rapid expansion. In contrast, the industrial free cash flow is a separate industrial-only perimeter. To regain Ram's commercial share, Ostermann stated Stellantis is reintroducing the V8 engine, launching a lower-priced 'Express' tier, increasing production, and re-entering NASCAR to boost brand excitement.

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    Philippe Houchois's questions to Stellantis NV (STLA) leadership • Q2 2025

    Question

    Philippe Houchois questioned the significant gap between operating cash flow and industrial free cash flow, suggesting the company should start reporting industrial and financing cash flows separately. He also asked what specific actions Stellantis is taking to regain fleet market share, particularly for the Ram brand, which has historically been strong with commercial buyers.

    Answer

    CFO Doug Ostermann explained the discrepancy by noting that operating cash flow includes the financial services business, which used over $4 billion in capital for its rapid expansion, whereas industrial free cash flow is a separate perimeter. Regarding Ram, he detailed a multi-pronged strategy: reintroducing the V8 engine, launching a lower-priced 'Express' tier to target a segment previously covered by the old DS truck, increasing production to support fleet sales, and boosting brand excitement by re-entering NASCAR.

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    Philippe Houchois's questions to Stellantis NV (STLA) leadership • Q2 2025

    Question

    Philippe Houchois questioned the large gap between operating cash flow and industrial free cash flow, noting the implied CapEx seemed very low. He also asked what specific actions Stellantis is taking to regain fleet market share, particularly for the Ram brand, which has seen significant losses.

    Answer

    CFO Doug Ostermann clarified that operating cash flow includes the financial services business, which consumed over $4 billion in capital for its expansion, while industrial free cash flow does not. Regarding Ram, Ostermann detailed a multi-pronged strategy: reintroducing the V8 engine, launching the lower-priced 'Express' model to address a key market segment, increasing production to better serve fleet customers, and boosting marketing by re-entering NASCAR.

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    Philippe Houchois's questions to Rivian Automotive Inc (RIVN) leadership

    Philippe Houchois's questions to Rivian Automotive Inc (RIVN) leadership • Q1 2025

    Question

    Philippe Houchois expressed surprise that inventory didn't increase more, given the overproduction and other factors, and asked if any actions were taken to free up capital. He also questioned whether Rivian's autonomy platform could be shared with Volkswagen to leverage its larger fleet for data collection.

    Answer

    CFO Claire McDonough noted that while finished goods inventory rose by $563 million, raw materials inventory fell by $220 million. COO Javier Varela elaborated that the company is implementing lean manufacturing principles, reducing incoming material inventory and optimizing logistics flows. CEO Robert Scaringe clarified that the autonomy platform is entirely separate from the Volkswagen JV, which focuses on the operating system and zonal ECU architecture.

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    Philippe Houchois's questions to Mercedes-Benz Group AG (MBGYY) leadership

    Philippe Houchois's questions to Mercedes-Benz Group AG (MBGYY) leadership • Q1 2025

    Question

    Philippe Houchois of Jefferies asked for confirmation that the 300 basis point tariff impact is before major mitigation efforts. He also explored the strategic challenges of shifting powertrain production to the U.S. and whether ICE capabilities should eventually move to North America.

    Answer

    CFO Harald Wilhelm confirmed the 300 basis point impact includes inventory and preliminary measures but not significant future actions like further localization. CEO Ola Kallenius explained that while powertrain assembly can be shifted, deep localization is a longer-term endeavor, and moving the entire European ICE industrial base would be cost-prohibitive. He also advocated for a pragmatic decarbonization path in Europe.

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    Philippe Houchois's questions to Mercedes-Benz Group AG (MBGYY) leadership • Q1 2025

    Question

    Philippe Houchois of Jefferies sought clarification on whether the guided 300 basis point tariff impact is before or after mitigation measures. He also asked about the long-term strategic possibility of shifting internal combustion engine (ICE) powertrain production to North America.

    Answer

    CFO Harald Wilhelm reiterated that the 300 basis point impact includes inventory and preliminary measures but excludes major actions like localization. CEO Ola Kallenius explained that moving the entire European ICE industrial structure would be cost-prohibitive in the medium term, and advocated for a pragmatic path to decarbonization in Europe.

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    Philippe Houchois's questions to Mercedes-Benz Group AG (MBGYY) leadership • Q2 2024

    Question

    Philippe Houchois of Jefferies asked if the agency sales model implemented in parts of Europe has led to a meaningful margin improvement that wouldn't have been achieved otherwise. He also inquired about the contractual term of the joint ventures in China and whether their expiration could trigger a strategic reorganization.

    Answer

    CEO Ola Kallenius explained that while a direct before-and-after comparison is difficult, the agency model has shown positive results, including significantly higher customer satisfaction due to price transparency. He believes the net effect is positive by eliminating intra-brand competition and enabling direct customer relationships and better data management. CFO Harald Wilhelm addressed the China JV question, stating they are very happy with their partner for the long term. He noted that contractual terms are confidential but emphasized that discussions are focused on installing new products for the future, indicating a strong ongoing partnership.

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    Philippe Houchois's questions to Mercedes-Benz Group AG (MBGYY) leadership • Q1 2024

    Question

    Philippe Houchois from Jefferies Financial Group Inc. inquired about the Q1 R&D tailwind, asking if it was seasonal and if a longer EV transition necessitates reinvestment in ICE. He also asked for the company's thoughts on adding range extenders to the portfolio, given market trends in the U.S. and China.

    Answer

    Executive Harald Wilhelm highlighted the importance of plug-in hybrids, calling Mercedes' broad portfolio a 'jewel in the toolbox' that is ready to meet demand during the transition. He clarified that while EV investments are not slowing, the company continues to invest to keep its ICE portfolio cutting-edge. Wilhelm noted the Q1 R&D figure is not a run-rate for the year, as it reflects phasing and stringent prioritization of all investments.

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