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Stellantis CEO Carlos Tavares Hints at Major Brand Overhaul Before Stepping Down

Publisher by Publisher
December 2, 2024
in Latest News
Reading Time: 4 mins read
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Stellantis CEO Carlos Tavares Hints at Major Brand Overhaul Before Stepping Down

BRANDS IN THE BALANCE: STELLANTIS FACES CRUCIAL DECISIONS AS TAVARES PREPARES TO EXIT

Stellantis, the global automotive conglomerate formed from the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group, is on the cusp of a significant shake-up. CEO Carlos Tavares, who promised to invest in all 14 brands for a decade, has now revealed that crucial decisions will be made much sooner. Speaking at the 2024 Paris Motor Show, Tavares announced that the fate of these brands will be decided in the next two to three years, well before his retirement in 2026.

With the clock ticking on Tavares’ five-year contract, which expires in early 2026, the search for his successor is already underway, with an announcement expected by the end of 2025. In the meantime, Tavares reassured that all Stellantis brands are financially secured through 2026, but some underperforming marques—like Chrysler and Maserati—face uncertain futures.

CHRYSLER AND LANCIA: CAN THEY BE REVIVED?

For Chrysler, the outlook is dire. The once-iconic American brand is down to just one model, the aging Pacifica/Voyager minivan, which raises questions about its long-term viability. However, the brand is preparing to launch its first electric vehicle (EV) next year, offering a glimmer of hope for a potential revival.

Across the Atlantic, Lancia is similarly struggling but has a clear roadmap for its rebirth. The Italian marque is preparing to launch a new Ypsilon model, followed by a flagship Gamma fastback in 2026. If Lancia survives beyond 2026, a new Delta model could hit the market in 2028, marking its full return to relevance.

ALFA ROMEO, DODGE, AND JEEP: BUILDING FOR THE FUTURE

Alfa Romeo has ambitious plans, starting with the next-generation Stelvio SUV in 2025 and a new Giulia the following year. By 2027, Alfa is aiming to target the luxury SUV market dominated by the Porsche Cayenne with a larger, high-performance SUV, signaling its intent to conquer the U.S. market.

Dodge, another American heavyweight, is focusing on its revamped Charger lineup and the new Hornet SUV, based on the Alfa Romeo Tonale. Reports suggest Dodge will reintroduce the Stealth nameplate in 2027 with an SUV to replace the Durango, keeping its muscle-bound image intact.

Meanwhile, Jeep is pressing ahead with a slew of new models, including electric versions of the Renegade and Compass. Additionally, Jeep is planning a “mainstream utility vehicle” to fill the gap beneath the Grand Cherokee, all set to arrive by 2027.

RAM AND FIAT: TACKLING QUALITY ISSUES AND A BUSY AGENDA

While Ram trucks are dealing with quality control problems, which have led to a 24% drop in U.S. sales through September, Stellantis is working hard to fix the issues. Ram remains a crucial brand in the U.S., and improvements are necessary to keep it competitive.

As for Fiat, along with Opel/Vauxhall, Citroën, and Peugeot, these brands are staying busy with new products that share mechanical underpinnings, continuing to cater to their respective markets with a focus on EVs and affordable mobility.

MASERATI AND DS AUTOMOBILES: UNCERTAIN FUTURES

Maserati is facing a crisis. Tavares recently admitted that the brand is struggling financially, blaming marketing rather than the quality of its vehicles. With Maserati “in the red,” it’s unclear what the future holds, but changes are likely needed to revive the luxury Italian marque.

Similarly, DS Automobiles faces an uncertain future. The French luxury brand is expected to introduce a new DS9 flagship model in 2025 along with another model, possibly leading a family of plug-in hybrids and EVs. However, whether DS will be given the chance to prove itself remains to be seen.

WHAT’S NEXT FOR STELLANTIS?

Managing a portfolio of 14 brands is no easy task, and with so many marques at risk of overlap, Tavares has hinted that streamlining may be inevitable. By 2026, Stellantis could see some of its brands merged, cut, or dramatically restructured as the company refines its strategy under new leadership.

For now, the next two to three years will be crucial for the future of Chrysler, Lancia, Maserati, and others. With Carlos Tavares at the helm for a short time longer, Stellantis is navigating a pivotal moment that could reshape the automotive landscape for years to come.

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