In recent years, in response to the challenges imposed by the ecological transition and the evolution of the automotive sector, numerous groups have sought to strengthen themselves through mergers or strategic alliances. One of the most significant is certainly the creation of Stellantis, the result of the merger between PSA Group and FCA Group that occurred in 2021.
The holding company now controls 14 brands, plus a 15th derived from the joint venture with the Chinese company Leapmotor. Unlike other large groups, such as Volkswagen or Renault, which operate under a guide brand, Stellantis does not have a reference brand. In these groups, in fact, a main brand dominates the landscape, while Stellantis has chosen to treat all its brands equally.
Stellantis might give up one or more brands to “survive”
The reality of sales clearly shows that not all brands in Stellantis contribute in the same way to the overall turnover. Indeed, the management of resources and sales was one of the main issues in the separation between former CEO Tavares and the holding company.
According to Reuters, John Elkann would be looking for a new leader at Stellantis who possesses the skills to effectively manage the vast range of brands, considering that Peugeot and Fiat alone represent 40% of the group’s sales, with 20% each. Behind them, Jeep contributes 15%, followed by Ram with 10%, Opel/Vauxhall with 9%, and Citroen with 8%. The picture changes for smaller brands: Dodge and Chrysler total only 3% of global sales, while Lancia, DS, and Alfa Romeo don’t even reach 2%, and Maserati struggles to do better.
With these numbers in mind, it is increasingly plausible that Stellantis may decide to reduce the number of underperforming brands, closing those that do not generate profits but only costs. A proposal that Tavares himself had hinted at in the past and that could be considered by the new CEO of Stellantis. However, to understand if this move will materialize, it is necessary to analyze the situation of each brand, as some present room for improvement.
Lancia, for example, has for years seen only the Ypsilon as the sole model in its range, but despite the contained global volumes, the Italian compact has always recorded excellent sales numbers. The future of the brand will depend on the reaction to the renewed Ypsilon. Alfa Romeo, on the other hand, is experiencing a difficult period due to a not fully updated range and the crisis in the sedan segment. However, with the arrival of the Junior and the new Giulia transformed into a crossover, the brand could be heading toward a new relaunch phase.
For DS, the fate will depend on the reception of new models in the market, while Maserati, despite being a premium brand, will have to face the challenge of revitalizing its range, given its low penetration in the current market.