"On the road" #20: Stellantis in a turbulent zone

Dear reader,

How distant those days seem when Stellantis's management was lauded. The era of abundant profits and delighted shareholders is over. Following a decline in results during 2024, the Franco-Italian group posted a net loss of €2.3 billion in the first half of the year. And it's not yet out of the woods.

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The worst is yet to come. A year after the ouster of its CEO, Carlos Tavares, Stellantis is still mired in the same predicament it was plunged into. The causes are both external and internal. It's true that the rather deteriorating environment and the downturn in the European market aren't helping the company get back on the path to growth.

Nevertheless, the Stellantis group will certainly have to make some difficult decisions. This will almost certainly involve selling or eliminating brands. It's anyone's guess which of the 14 brands – Abarth, Alfa Romeo, Citroën, Chrysler, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM, and Vauxhall – will ultimately pay the price.

Everyone has their own theory. Did the Modena-based trident miss its chance? Aren't Alfa Romeo, DS, and Lancia redundant? Behind Stellantis's difficulties lies the whole history of mega-mergers. In the automotive industry, none have worked in the long run. The Renault-Nissan alliance was dismantled. The Mercedes-Chrysler merger didn't last very long. Only the Volkswagen Group has managed—for the moment—to keep all its brands under one roof.

Enjoy your reading and safe travels!

Sylvain Reisser