As Stellantis Chairman John Elkann continues his search for a new CEO, a central question arises: should the group's number of brands be reduced? With 14 brands resulting from the merger between Fiat-Chrysler and PSA in 2021, Stellantis has the largest portfolio in the field. But is this diversity an asset or a burden?
Too broad a portfolio?
A source close to Elkann told Reuters that any candidate without a clear vision of where to go with the brands would not be considered. Former CEO Carlos Tavares, who was ousted in December, claimed that all brands had a future, but the new management could adopt a clearer strategy.
Brands at risk: Alfa Romeo and Lancia under threat?
According to analysts, Alfa Romeo, Lancia and DS are the most vulnerable to restructuring. Dodge and Chrysler, on the other hand, although weak in terms of volume (fewer than 150,000 units sold in the U.S. in 2024), could survive thanks to their anchoring in the American market. At present, Chrysler is reduced to a single model (Pacifica), Dodge to the Charger and two SUVs.
Jeep and Ram remain the most profitable.
The idea of merging certain brands has been raised: Jeep could absorb Chrysler, Ram could integrate Dodge, but the economic interest remains limited.
Europe, a more complicated market than the U.S.
Stellantis has lost ground in the U.S., dropping from 4th to 5th place behind Honda, but it's in Europe that the challenges are greatest.
With insignificant sales (0.3 percent of the market for Alfa Romeo, Lancia and DS), Stellantis may have to make some radical choices. Alfa Romeo's future could be that of a niche brand, while Peugeot, representing 20 percent of group sales, is on steady ground. Fiat could refocus on affordable vehicles.
Electrification key to strategy
Under the umbrella of the giant that is Stellantis, 20 new models are planned by 2025, many of them electric and hybrid. But the company is reportedly looking to form a partnership with Leapmotor to strengthen its electric offering.
While Stellantis is not yet making any radical decisions, pressure from investors for a strategic refocusing is strong. In a few years' time, a reduction in the number of brands may become inevitable.
