- Stellantis is searching for a new CEO after the departure of Carlos Tavares last December.
- The struggling group has 14 brands and not all of them will necessarily survive in the new era.
- Stellantis profits dropped by 48 percent in H1 2024; it reveals full 2024 data later this week.
The automotive world is watching as Stellantis chairman John Elkann sifts through résumés for the next big boss of one of the world’s largest car companies. With Carlos Tavares’ sudden departure, the incoming CEO isn’t just inheriting a massive company with 14 brands, he’s walking straight into an automotive episode of “Survivor,” where some brands might not make it to the next round.
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Since Stellantis formed in 2021 from the FCA-PSA merger, it’s been a giant car family, and like lots of big human families, not everyone has been getting along. Although Tavares officially left on what he called “amicable” terms, there’s no doubt his exit was tied to disagreements over strategy.
Related: Which European Car Should Stellantis Import Or Rebadge For America?
Will the next CEO double down on Stellantis’ bloated lineup and try to make it work, or finally start trimming the fat? Because with everything from muscle car legends like Dodge to ultra-niche brands like Lancia and DS in its stable, you can’t help but ask if Stellantis really needs all 14 brands.
Some of those brands are powerhouses. Jeep is still a strong performer, Ram is a key player in the truck scene, and Peugeot is a Euro favorite, even if its market share is lower than it should be. But others? Lancia only sells one car. DS is still struggling to convince people it’s a premium brand. And Alfa Romeo, despite its loyal fanbase, is forever teetering between “comeback” and “on life support.” Maserati? Apparently, it’s still a thing.
If you’re a fan of Peugeot 308s, Jeep Wranglers, or Fiat 500s, you can probably relax – those brands aren’t going anywhere and are guaranteed much-needed future investment to bolster their lineups. Jeep accounts for around 15 percent of the group’s sales and Fiat and Peugeot contribute 20 percent apiece, Reuters estimates. But let’s just say that with Stellantis’ stock taking a nosedive, something, or someone’s gotta give.
Stellantis profits fell by a whopping 48 percent in the first half of 2024, and later this week the company will release full 2024 numbers so we can see how it fared in the second half of the year. We hope the news is more positive because even if a new boss is announced soon it’ll be a while before any changes he or she makes will have a big impact on the bottom line.
But in reality, this week’s news is unlikely to be upbeat given that Stellantis downgraded its predicted income last fall, warning of lower-than-expected sales in the second half of 2024. Like other automakers, it’s been struggling with a downturn in China, but other global regions have been hard work, too.
Which brands would you cut and which would you keep? The same report notes that consumer recognition of the Stellantis name and which brands it represents is much lower than for VW, Toyota, and BMW, so would you change the name of the whole group? Drop a comment below and let us know how you’d steer the Stellantis ship to safety if Elkann threw you the keys.
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