Stellantis, parent company of Jeep, Dodge, Ram, and others, has been on shaky ground for a while, but the global automaker is undergoing big changes under the leadership of its still-new CEO, Antonio Filosa. Its new strategic plan, set for launch in May, will reportedly see the company refocus its investments on a handful of its 14 global brands, but that shift likely won’t involve closing the door on others – for now.
Reuters reported on the investment strategy, which will focus on four brands: Fiat, Jeep, Peugeot, and Ram, with the other 10 brands moving into more regional situations. Smaller names, including Alfa Romeo, won’t be cut off, but much of their future vehicle development will be supported by the larger brands’ existing technologies and platforms, according to the report.
With such a large portfolio, Stellantis has been under pressure to shutter some brands, including Europe’s Lancia and Citroen, but Filosa has so far remained committed to the automaker’s “lesser” nameplates.
“Some of those brands could prove useful to the group in the future, should market conditions evolve,” Marco Santino, partner at consultancy Oliver Wyman, told Reuters, noting that they would be extremely difficult to revive if shuttered. That said, there are still big questions about the future of Stellantis’ American brands, such as Chrysler, whose lineup has dwindled to two minivan models.
Filosa’s commitment to keeping the lights on at smaller brands isn’t a guarantee that Stellantis won’t eventually be forced to make hard decisions. If the money dries up, there may be no other options left, leaving executives to pick and choose which brands to float and which to cut.
These changes would aim to reverse the automaker’s declining market share, which has been hit as Chinese automakers have made big strides in Europe and other global markets. Stellantis also took a significant hit after scaling back its electrification plans and has seen its valuation tumble to around 21 billion euros, putting it on par with Rivian, a startup electric automaker.
