The End of the Road for Alfa Romeo and Maserati?

Stellantis, the world’s fourth-largest automotive group, has been facing challenges in maintaining its growth trajectory. According to the company’s financial report for the first half of 2024, Stellantis’ revenue decreased by approximately 14% compared to the same period in 2023, while net profit plummeted by 48%.

In North America, Stellantis’ sales declined by 18% compared to the first six months of the previous year. The company attributed this drop to the discontinuation of four models: the Dodge Charger, Dodge Challenger, Jeep Renegade, and Jeep Cherokee.

Meanwhile, in Europe and South America, Stellantis’ sales fell by 6%. On the other hand, the group’s vehicle sales in the Middle East and Africa increased by 3% year-over-year, driven primarily by a recent surge in Fiat’s revenue.

In light of these developments, CEO Carlos Tavares has stated that Stellantis will be ruthless in cutting brands that are underperforming and no longer align with the company’s long-term strategy.

“If any car brand doesn’t make money, we will shut it down,” the CEO asserted.

While Carlos Tavares did not specify which brands are at risk of being discontinued, Lancia, DS, and Maserati are considered the most vulnerable. Alfa Romeo, Dodge, and Chrysler also face an uncertain future. On the other hand, brands like Fiat, Opel/Vauxhall, Peugeot, Citroen, Jeep, and Ram are seen as safe from potential cuts.

Maserati’s current strategy is focused on affordable car brands, which means premium brands like Alfa Romeo and Maserati will not be a priority for the group’s development.

With a portfolio of 14 brands, Stellantis is facing challenges in managing and operating such a large number of subsidiaries. Therefore, Carlos Tavares’ decision to reduce the number of brands is seen by industry experts as a prudent move.

Thai Son (Tuoitrethudo)