Running a car company is very difficult, but it is especially difficult if the company itself sells cars under the names of 14 different brands.
In 2021, the automotive multinational we know as Stellantis (STLA) was born from the merger between the Italian-American carmaker Fiat Chrysler (FCA) and the French carmaker Peugeot SA (PSA). At the time, the company committed to investing in all brands for at least 10 years; however, things can change three years into the operation.
During its first-half 2024 earnings conference call this week, Stellantis CEO Carlos Tavares reported results that missed expectations, blaming a “challenging industry environment” and its own “operational issues.”
“We have a lot of work to do, especially in North America, to maximize our long-term potential,” Tavares said.
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With brands ranging from European powerhouses like Fiat to American ones like Chrysler and Dodge, Stellantis is leaning on a few players that could sink it. Tavares issued a stark warning to the many brands in its portfolio that may be acting as dead weight.
“If they don't make money, we'll shut them down,” Tavares threatened during the call. “We can't afford to have brands that don't make money.”
Stellantis does not disclose figures for its individual brands, but with 14 brands under its belt, we could name three brands that could be at risk of facing Tavares’ axe if they continue down their current path. However, a closer look at the recent histories of these brands may suggest that the damage is self-inflicted.
Stellantis
Chrysler
Next year, Chrysler will celebrate its 100th anniversary, but for now, Chrysler is making do with just one product in its lineup: the aging Pacifica minivan.
For its price, the Pacifica offers an attractive option for families who don't want to opt for a large SUV to transport the kids and their stuff, but competition from other conventional brands is very tough.
sling technology-upgrades-for-the-whole-family”>Odyssey Minivan It has been updated with new styling and added tech features for 2025, while the Toyota Sienna offers similar features, such as available all-wheel drive and a hybrid powertrain, for a much lower starting price than the Pacifica. However, the $51,250 Pacifica plug-in hybrid is eligible for a $7,500 IRS tax credit that can be used toward the purchase of the car.
Although the brand currently has one vehicle in its range, that doesn't mean it has no direction.
In February, the brand unveiled the Halcyon, a concept vehicle intended to represent the future of the Chrysler brand.
According to Chrysler, the car features the brand's new “Harmony in Motion” design language, with its clean, curved lines and pencil-thin front and rear LED light bars on the outside. Inside, the focus is on technology and uses sustainable materials.
The Halcyon is a concept car, but the brand aims to launch its first battery-electric vehicle in 2025 and introduce an all-electric lineup by 2028. The overall future of electrification efforts from major manufacturers is currently leaning toward plug-in hybrids, with some manufacturers like Ford focusing on fuel-burning profit drivers.
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Maserati
Maserati
Italian luxury sports car brand Maserati is an oddball among the rest of the Stellantis lineup, having to share space with mass-market brands like Fiat and American ones like Jeep, Dodge and Ram.
Interestingly, Maserati was the only Stellantis brand to reveal figures for the first half of 2024. During the period, it suffered an operating loss of €82 million, or roughly $89 million.
However, given its unique identity within the Stellantis group and its rich history in producing high-performance sports cars, the decision to separate Maserati from the multinational might not be the right one. Instead, Stellantis could decide to spin off Maserati and make it its own brand, separate from the 14-brand multinational corporation.
It's happened before.
In 2014, the then Fiat-Chrysler separated from Ferrari. (CAREER) after being owned by Fiat since 1969. The brand's commitment to exclusivity contrasted sharply with mass-market brands such as Jeep and Fiat, and efforts to increase production failed.
Like Ferrari, Maserati has high-performance roots, but also achieves broader mass-market appeal through models like the Grecale and Levante crossover SUVs and the Ghibli and Quattroporte SUVs.
Although the brand posted losses in the first half of the year, 2023 was its strongest year, with more than 26,700 units delivered last year, an improvement from 16,900 units in 2020.
Stellantis
Lancia
American buyers may not be familiar with Lancia, but seasoned car enthusiasts can talk between now and next week about the brand's rich racing heritage and production of legendary production cars that include rally-born classics like the Stratos, 037 and Delta Integrale.
Since 2017, the brand has only sold its cars in Italy, but it has suffered a similar fate to Chrysler.
The brand currently sells just one car: the Ypsilon, a city car that has been a relative sales success for Stellantis despite being sold in just one country. With just 44,743 units sold in 2023, the car was the third best-selling car in Italy, while its hybrid version sold 39,683 units in the same year.
When Fiat bought a stake in Chrysler in 2009 to create Fiat-Chrysler, the Lancia lineup changed dramatically to incorporate some vehicles from its new American siblings.
Between 2011 and 2015, three Chrysler vehicles underwent an Italian facelift for sale in European markets. The Chrysler 300 sedan became the Lancia Thema, the Chrysler Town & Country became the Lancia Voyager, and the Chrysler 200 became the Lancia Flavia. In contrast, the Lancia Ypsilon was sold as a Chrysler outside Italy.
Lancia has revamped the Ypsilon to power its grand return to Europe. This year, the brand plans to re-enter the Belgian, Dutch, French and Spanish markets, and next year, the German market. In addition, the brand has re-entered the rally sport, offering the car to private teams wishing to compete in the FIA WRC Rally4 Championship.
Stellantis, which trades under the symbol STLA on the New York Stock Exchange, fell 2.38% at the close of the day and closed at $17.66 per share.
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