AUTONEWS

Stellantis to focus on four brands in the future: Jeep, Ram, Peugeot and Fiat
Stellantis, the automotive giant with a portfolio that has more brands than some manufacturers have models, is reportedly changing its strategy and plans to treat only some of them with special attention. Specifically, according to new reports, the new strategy of CEO Antonio Filosa will direct most of the investments towards the Jeep, Ram, Peugeot and Fiat brands.
Such a decision would make sense from a strictly business perspective. Jeep and Ram remain the key source of profit, especially in North America, Peugeot is one of the strongest names of the group in Europe, while Fiat still has a significant influence in several markets and provides Stellantis with a presence in affordable segments, writes Autonews.
The fate of the other brands...The more interesting part of the plan concerns the fate of the others. Stellantis also owns Alfa Romeo, Citroen, Opel, DS, Lancia, Maserati and others, and it seems that none of them will have a decisive influence on important decisions. Not even Dodge gets a seat at the head table. Instead of shutting down completely, the alleged plan is to use many of those brands more selectively, in countries or segments where they still have commercial appeal.
So instead of each brand getting its own expensive and customized future and a significant slice of the investment pie, the second-tier brands could borrow platforms, powertrains and electronics from the favored four. That could mean more model renaming than loyal fans of individual brands would like, and the report suggests that such vehicles, tailored to local tastes, are one possible path.
Delaying the shutdown...However, it seems that these brands will at least survive, as Filosa reportedly does not want to start shutting them down, Reuters reports. Closing a car brand can save money, but reviving it later is difficult, expensive and often impossible.
Names like Lancia or Alfa Romeo, which were at one point considered written off, still carry heritage value, even if that heritage does not always pay the quarterly bills.
Financial pressures...The pressure on Stellantis is real. The company has lost market share in both the US and Europe as Chinese brands continue to expand. Like other manufacturers, it has recently suffered a huge financial blow related to the change in plans for electric vehicles, which highlights how quickly the market has moved away from previous assumptions.
That’s why common, multi-purpose platforms are more important now than ever. Cars that can support gasoline, hybrid and electric powertrains give manufacturers flexibility at a time when customers and regulators are not sticking to one script.
Stellantis' focus on its core brands has been a central theme since the merger between FCA and PSA, but the assertion that the company will only concentrate on Jeep, Ram, Peugeot, and Fiat is a simplistic interpretation of the current strategy.
While these four are the "giants" in terms of global volume and profit, Stellantis' official strategy (Dare Forward 2030 plan) is somewhat more complex:
1. The "global" volume brands...In fact, Jeep, Ram, Peugeot, and Fiat are the pillars of support. They receive the largest investment in marketing and product development because they dominate the world's largest markets (North America, Europe, and South America). Fiat, for example, is the group's number one brand in terms of worldwide sales volume.
2. The 10-Year Commitment...Stellantis CEO Carlos Tavares gave all 14 brands in the group a 10-year deadline (starting in 2021) to prove their viability and profitability. This includes brands that many considered "at risk," such as:
Alfa Romeo and Lancia: Undergoing a renaissance as premium/luxury brands with new electrified models.
Chrysler and Dodge: In full transition to the high-performance and convenience EV (electric vehicle) market in the US.
Opel/Vauxhall: Strengthening their position in Europe as a German design alternative.
3. Threat of Cuts...Recently, Stellantis' stance has hardened. Due to lower-than-expected financial results in the first half of 2024, Tavares stated that "if the brands don't make a profit, we will close them." This puts smaller brands under real pressure, but so far, none have been officially discontinued.
In summary...Although Stellantis focuses its resources where the return is highest (the four brands you mentioned), the group still maintains its plan to sustain a diversified portfolio, as long as each brand can justify its existence financially.













