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Jim Cramer urges investors to swap Stellantis for General Motors
Cramer linked his preference to trust in General Motors CEO Mary Barra and argued Stellantis is not investable due to dividend and execution concerns.
On Yahoo Finance, Jim Cramer used a recent Mad Money segment to tell a caller who bought Stellantis N.V. for its dividend that the position has underperformed, with persistent capital depreciation and earnings misses.
Cramer advised viewers to move into General Motors, saying he does not view Stellantis as investable right now, while presenting GM as the better choice in part because he credits CEO Mary Barra’s execution.
In the discussion, the Stellantis bear case centered on operational missteps, including high North American dealer inventory backlogs, aggressive price discounting, and volatile cash flows that have pressured profit margins.
For GM, Yahoo Finance said the counterpoint includes cyclical macroeconomic pressure, capital allocation risks, slowing consumer EV adoption, and potential margin compression in key truck and SUV segments, even as Cramer suggested Barra’s leadership can help guide the electric versus ICE direction.