Carlos Tavares gave each brand a period of 10 years to demonstrate its viability. Will they all manage to survive?
Stellantis is a complex automotive group that has no less than 14 automotive brands under its roof.
Created in 2021 after the merger of PSA and FCA, this concern has so far managed to keep every brand under it alive. The conglomerate’s boss, Carlos Tavares, has given each a 10-year period to demonstrate whether it is sustainable (or not), although disappointing financial results this year have led him to declare that brands performing below expectations will be dropped.
Three years after the merger, things get more complicated. Managing so many often overlapping brands can be a difficult job. Add to that the growing pressure from Chinese manufacturers and electrification targets, and we see that the problem is quite large.
Which brands have the greatest potential?
Today, it (potential) is measured by the ability of one brand to attract numerous markets and customers around the world. It is not enough to be competitive in just one market or region. The growing competition from China is making life difficult for everyone, especially for brands whose presence is strongly present in individual markets.
For this reason, Jeep was and remains the most interesting brand in Stellantis. Despite the difficulties it faces today, it is widely recognized as a company that operates in the appropriate segment and has a rich heritage. This iconic brand accounted for 17 percent of the group’s global sales in 2023, with 1.04 million units. The overall decline of six percent compared to 2022 followed some demand issues in the US and Canada and disruption to local production in China.
However, Jeep has positioned itself well in Brazil and Europe, and could improve its presence in the Middle East, Africa and Southeast Asia. The challenge comes in the form of more frequent launches of a larger number of products.
Ram also has good potential. It is an American brand that is not available in Europe and Asia. However, it exists in the segments of pickup trucks and light commercial vehicles, which are of strategic importance in developing and growing economies.
Latin America, Africa, the Middle East and Turkey, Central Asia, India and Southeast Asia accounted for 22 percent of global sales of light commercial vehicles in 2023 (excluding Russia and Iran). When Australia and New Zealand are added to that, where pickup trucks are very popular, we arrive at almost a quarter of global sales.
Sales of pickup trucks and light commercial vehicles in these markets generated 3.8 million units. The total rises to 7.5 million when the US and Canada are included in the equation.
The role of Maserati
The third brand that is still in the spotlight is a Maserati. It has difficulties at the moment, but it also has strong assets. If used in the right way, it could satisfy. First of all, it is still considered a luxury brand, which is very important, because it is not exposed to Chinese competition like mainstream and premium brands.
In the second place, it is a global brand, which means that it is known even in those regions where it is not sold. Although it lags behind Porsche in terms of sales and product range, it is still a desirable brand that is closely associated with Italian design and craftsmanship.
These values are crucial in higher segments where the competition is extremely fierce. In addition, there is still room for this Italian manufacturer, i.e. a larger target group than is the case with Ferrari and Lamborghini, which are focused on sports and super sports cars.
Source: Automotoshow.rs / Motor1.com
Photo: Arhiva Autoblog.rs / Stellantis
Source: autoblog.rs
