AfriPulse
According to the latest rumors, Stellantis’s new CEO, Antonio Filosa, is working hard to get Stellantis back on track. This includes a different philosophy but possibly also the elimination of brands, particularly in Europe.
Filosa isn’t exactly new, but he took over as Carlos Tavares’ successor in May , becoming CEO of the world’s fourth-largest car manufacturer. While that might seem like a good thing, it certainly isn’t in this case. Things haven’t been going well for Stellantis for a while now, struggling with disappointing sales and profit figures worldwide and boasting a diverse collection of brands that don’t always complement each other. This isn’t just about the 11 different brands Stellantis operates in Europe but also about the fact that 10 of those 11 brands have virtually nothing to do with the three American Stellantis brands, and vice versa. Stellantis North America and Stellantis Europe are essentially two separate car manufacturers under one roof, although ways to merge and streamline global operations are always being explored.
Different focus
According to Reuters, which spoke with insiders, the major operation to get Stellantis back on track has now truly begun. Carlos Tavares was still primarily focused on profit, reportedly scrapping successful models if necessary and, according to insiders, also making concessions on quality. Filosa reportedly wants to shift the focus from profitability to sales figures (keeping the factories running), while simultaneously exploring how the company can become healthier by eliminating what isn’t working and focusing on what is. Investors and other stakeholders have reportedly already expressed understanding that this might depress profits in the short term, as long as there’s a prospect of improvement in the long term.
All brands viable
These plans also bring the elimination of brands into the picture. And that brings us to Europe, where Stellantis has far more brands than in the US, and those brands don’t always complement each other well. This isn’t news, but it has already led to rumors . Anyone even remotely familiar with the European automotive world can point to a few Stellantis brands whose sales figures don’t make a significant impact. This is particularly true in the premium segment, while Lancia and DS are also still targeting more or less the same target group. Opel and Peugeot are still achieving sales, but they don’t complement each other seamlessly either. This certainly won’t mean that any of these major brands will disappear immediately, but it will require a long-term vision from all brands, and their viability will be examined.
Source: AutoJosh | Read the Full Story…
