Stellantis' New CEO Faces Decision on Which of the 14 Brands Will Remain or Be Discontinued | Carscoops

      Carlos Tavares left due to strategic disagreements, but what is the best approach for the struggling Stellantis group?

      7 hours ago

      by Chris Chilton

      Stellantis is currently in search of a new CEO following the departure of Carlos Tavares last December.

      The beleaguered group comprises 14 brands, and not all will necessarily endure in the coming era.

      Stellantis' profits fell by 48% in the first half of 2024; full data for 2024 will be disclosed later this week.

      As Stellantis chairman John Elkann reviews potential candidates for the next leader of one of the largest automobile manufacturers globally, the automotive industry is keenly observing. With Carlos Tavares’ unexpected exit, the new CEO will be stepping into not just a massive company with 14 brands but also a situation reminiscent of an automotive version of “Survivor,” where some brands might not survive to the next phase.

      Since its formation in 2021 from the FCA-PSA merger, Stellantis has been a significant automotive entity, and, similar to many large families, internal relations have been strained. Although Tavares claimed to have left on “amicable” terms, it is clear that his departure was a result of strategic disagreements.

      Will the forthcoming CEO choose to fortify Stellantis’ extensive lineup or finally begin to streamline operations? With everything from iconic muscle cars like Dodge to niche labels like Lancia and DS, questions arise regarding the necessity of maintaining all 14 brands.

      Some of these brands are robust performers. Jeep remains a strong asset, Ram is a key player in the truck market, and Peugeot enjoys popularity in Europe, even if its market share is not as high as it could be. However, others are struggling; Lancia offers only one model, DS is having difficulty establishing itself as a premium brand, and Alfa Romeo, despite a loyal following, is continually caught between “revival” and “barely surviving.” Maserati? It still exists.

      If you’re a fan of the Peugeot 308, Jeep Wrangler, or Fiat 500, you can probably feel assured—those brands are not going away and are slated for much-needed future investments to enhance their offerings. Jeep represents about 15% of the group's sales, while Fiat and Peugeot each make up around 20%, according to estimates from Reuters. Nevertheless, with Stellantis’ stock experiencing a significant decline, adjustments are clearly necessary.

      Stellantis saw a substantial 48% drop in profits in the first half of 2024, and full-year numbers will be released later this week, allowing for a clearer picture of performance in the latter half of the year. Positive news is hoped for, as even with a new leader appointed soon, any changes will take time to make a noticeable impact on financial results.

      However, this week’s outlook likely won’t be rosy, given Stellantis’ earlier earnings forecast revision last fall, indicating lower-than-expected sales for the second half of 2024. Like other manufacturers, Stellantis is facing challenges due to a downturn in China, and difficulties in other global markets are also being felt.

      Which brands would you retain and which would you eliminate? It has been noted that public awareness of the Stellantis name and its associated brands is considerably lower than that of VW, Toyota, and BMW. Would you consider renaming the entire group? Share your thoughts on how you would navigate the Stellantis operations to safety if Elkann handed you the reins.

      Jeep could potentially introduce the Avenger to the North American market.