Stellantis Confronts Major Restructuring After $26.5 Billion EV Setback
Stellantis, one of the world's largest and most recognisable automotive manufacturers, is facing a critical juncture after reporting a staggering $26.5 billion write-down on its electric vehicle investments. This substantial financial blow has forced the company to reassess its entire EV strategy and brand lineup.
Financial Strain and Brand Overlap
According to a recent report by Forbes, Stellantis anticipates a loss of $22.6 billion for the second half of 2025. The company's extensive portfolio includes popular brands such as Peugeot, Citroen, Fiat, Vauxhall, Chrysler, Jeep, Ram, Dodge, Lancia, DS, Abarth, Alfa Romeo, and Maserati. However, this sprawling array of marques is now under intense scrutiny.
Felipe Munoz, an industry expert who leads the research platform Car Industry Analysis, emphasised the urgency of the situation in an interview with Forbes. "Under Tavares, Stellantis was expected to get rid of some brands," Munoz stated. "Under Filosa, this is mandatory. The group must concentrate its declining profits on what it does better."
Six Brands at High Risk of Discontinuation
Munoz specifically highlighted six brands that are particularly vulnerable: Lancia, Chrysler, DS, Maserati, Abarth, and Dodge. He argued that there is insufficient differentiation among several of Stellantis's brands, making it difficult for consumers to distinguish between them.
"It is hard to tell the difference between the positioning of Citroen and Fiat, Opel and Peugeot in Europe," Munoz explained. "What's the difference between a DS and the upcoming Lancia cars? The premium hub has not worked either. Maserati as a luxury brand, and Alfa Romeo as a premium one, have not been able to find a decent position within their respective segments."
He further questioned the logic of reviving the Lancia brand while Alfa Romeo and Maserati continue to struggle. "What's the point of reviving a brand when you already have two other brands struggling to go on?" Munoz added.
Call for Strategic Overhaul and Consolidation
Munoz urged Stellantis to take decisive action regarding the at-risk brands. "Stellantis needs to address the situation of brands like Lancia, Chrysler, DS, Maserati, Abarth, and Dodge," he said. "Whether they integrate them, sell them or simply kill them. The rest of the brands also need a reboot."
He outlined specific challenges for other marques within the group:
- Fiat cannot continue competing directly against Citroen and requires more product development, particularly following its success in Brazil.
- Peugeot and Opel must establish clearer differentiation in the market.
- Jeep needs to accelerate its product plan and better leverage its strong position as a dedicated SUV brand.
- Ram requires an expanded lineup of pickup trucks.
- Alfa Romeo needs greater consistency in its product planning and execution.
The $26.5 billion write-down has placed immense pressure on Stellantis to streamline operations and focus resources on its most profitable and distinct brands. This potential restructuring could significantly reshape the automotive landscape, affecting brand availability and market competition in the coming years.
