The automotive concern Stellantis is preparing a significant turn in its business model. According to sources close to the company, who were informed by Reuters, the new CEO Antonio Filosa plans to focus most capital investment on just four key brands: Jeep, Ram, Peugeot and Fiat. This decision marks a departure from the previous policy of uniform financing of all 14 brands within the group, which was a feature of the previous director’s mandate. Carlos Tavares.
Jeep, Ram, Peugeot, Fiat
The main reason for the change in strategy lies in the profitability and sales volume of the mentioned brands on a global level. Jeep and Ram are recognized as profit drivers in the North American market, while Peugeot and Fiat hold key positions in Europe and developing regions. Official details of this plan are expected to be presented to the public on May 21 as part of the company’s new long-term strategy.
Although the focus is shifting to the four “core” brands, sources point out that Stellantis does not plan to shut down the remaining brands such as Citroën, Opel or Alfa Romeo for the time being. Instead, they will be repositioned as regional brands or those intended only for certain markets. Their development in the future will primarily rely on the technology and joint platforms developed by the four leading brands, which will achieve significant savings in production.
This approach should allow the group to maintain a presence in specific national markets where their brands have deep roots and a loyal customer base, without the need for huge, independent investments in each of them. By using universal platforms, all brands within the concern will be able to offer electric, hybrid or gasoline powertrains depending on demand in local markets.
Market pressures
The need for such a drastic turn arose from an unenviable financial situation. Stellantis is facing a decline in market value, which is currently estimated at around 21 billion euros, as well as increased competition from Chinese manufacturers of electric vehicles. The company previously reported a loss of €22.2 billion related to the recalibration of its electric vehicle strategy.
As part of the recovery plan, Stellantis is also exploring the possibilities of cooperation with Chinese partner Leapmotor, including a strategy in which they would sell their cars but “repackaged” under their brands.