Maserati has just forfeited a $1.5 billion investment as Stellantis reevaluates its electric strategy.

      Maserati

      As Maserati's next chapter begins to take form, marked by the MC20 supercar, a fresh GranTurismo, and the essential Grecale SUV, Stellantis appears to have reservations about the brand’s direction. During an earnings call on Wednesday for the last quarter of the 2024 financial year, Stellantis CFO Doug Ostermann revealed that the company has accounted for a $1.59 billion reduction in its investment in Maserati, which includes “the cancellation of certain projects prior to launch,” as noted in the company's investor presentation.

      Ostermann was predictably vague in detailing the rationale behind this decision, although he highlighted the Trident brand's ambitious electrification strategy. “Certainly, as we assess the momentum of our activities in Maserati, we must acknowledge that the dynamics in that segment, especially in the Chinese market, and our expectations regarding how swiftly the luxury market would embrace electrification, have been revised, prompting us to adjust the financials accordingly,” he said during the call.

      This follows a notably challenging year for Maserati, with sales plummeting from approximately 26,600 to 11,300—representing a 58% decline. In July, when former CEO Carlos Tavares was still leading Stellantis, he was quite clear regarding struggling brands, stating that “if they don’t make money, we’ll shut them down” and “we cannot afford to have brands that do not generate profit.”

      At that time, former CFO Natalie Knight reflected on what was then a difficult first half of the year for Maserati in a media conversation, expressing that “there could be some point in the future when we look at what’s the best home” for the brand. This prompted significant concern that Stellantis might be considering selling the iconic Italian brand, leading to a joint statement from Stellantis and Maserati to ease those worries, affirming the parent company’s “unwavering commitment” to the brand.

      This week, Stellantis' commitment has manifested in nearly $1.6 billion worth of canceled products and resources for the Bologna-based brand. This may encompass future electric variations of the Quattroporte, Levante, and MC20, while the GranTurismo and GranCabrio Folgore have successfully launched before the cancellations occurred. Last summer’s concerns regarding the company’s future were primarily attributed to the discontinuation of models such as the outgoing Ghibli, Quattroporte, and Levante.

      With the departure of those models, the V8s in Maserati's lineup also came to an end; aside from the Nettuno V6, the brand seemed set on moving towards electric vehicles. Given that many automakers are reevaluating their complete EV strategies and allowing internal combustion engines an extended lifespan, it may be prudent for Maserati to avoid hurrying into launching too many fully electric models.

      However, putting a halt to ongoing projects and revisiting initial plans entails recognizing that recovery won’t come quickly. Credit goes to Maserati for grasping this; management views 2025 as a year for rebuilding and doesn’t anticipate significant sales recovery until 2026. In the near term, it plans to introduce a lower-power, entry-level variant of the GranCabrio with 490 horsepower, positioned below the 540-hp Trofeo.

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