Carlos Tavares left due to disagreements on the strategy, but what is the right strategy for the Stelllantis group in difficulty?
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by Chris Chilton
14 hours ago
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- Stellantis is looking for a new CEO after the departure of Carlos Tavares last December.
- The group in difficulty has 14 brands and not all will necessarily survive in the new era.
- Stellantis’ benefits dropped by 48% in H1 2024; It reveals complete 2024 data later this week.
The automotive world looks at the president of Stellantis, John Elkann, reviews the curriculum vitae for the next big boss of one of the largest automotive companies in the world. With the sudden departure of Carlos Tavares, the new CEO does not hesitate to inherit a massive company with 14 brands, he enters directly into an automotive episode of “Survivor”, where certain brands may not go to the next round.
Since Stellantis formed in 2021 of the FCA-PSA merger, she has been a giant family of cars, and like many large human families, not everyone got along. Although Tavares officially left what he called “friendly” terms, there is no doubt that his release was linked to disagreements on the strategy.
Related: What European car should it import or rebadger for America?
Will the next CEO double on the inflated range of Stellantis and will he try to make it work, or finally start cutting the fat? Because with everything, legends of muscle cars like Dodge to ultra-niche brands like Lancia and DS in its stable, you can’t help but ask yourself if Stellantis really needs the 14 brands.
Some of these brands are powers. Jeep is always a solid artist, Ram is a key player in the truck scene, and Peugeot is a favorite of the euro, even if its market share is lower than what it should be. But others? Lancia sells only one car. DS always finds it difficult to convince people that it is a premium brand. And Alfa Romeo, despite his faithful fans base, is forever denigrated between “return” and “on the support of life”. Maserati? Apparently, it’s always one thing.
If you are a fan of Peugeot 308, Jeep Wranglers or Fiat 500, you can probably relax – these brands are not going anywhere and are guaranteed of an essential future investment to strengthen their ranges. Jeep represents around 15% of group sales and Fiat and Peugeot contribute to 20% each, estimates Reuters. But let’s just say that with the stock of stellantis taking a nose, something, or someone should give.
Stellantis’ profits fell 48% in the first half of 2024, and later this week, the company will publish complete figures in 2024 so that we can see how it was in the second period. We hope that the news is more positive because even if a new boss will be announced soon, it will take a while before the modifications it makes will have a significant impact on the results.
But in reality, it is unlikely that the news of this week will be optimistic since Stellantis downgraded its expected income last fall, warning sales lower than the second half of 2024. Like the other car manufacturers, it Having struggled to take place in China, but other global regions have also been difficult work.
What brands would you cut and what do you keep? The same report notes that consumer recognition named Stellantis and what brands it represents are much lower than for VW, Toyota and BMW, so do you change the name of the whole group? Place a comment below and tell us how you would direct the Stellantis Stellantis ship if Elkann threw the keys to you.
