As part of a drive to streamline operations and ensure profitability Stellantis will review its portfolio of 14 car brands to determine which have the strongest future.
Chief executive Carlos Tavares revealed the plan to scrutinise the brands within the next two or three years while at the Paris Motor Show this week.
But he suggested a successor would see it through as he his contract expires in 2026 and he has not sought a third term in the post.
“We will review each brand’s performance at about two-thirds of the way through the Dare Forward 2030 plan,” Tavares stated, referring to Stellantis’s long-term strategy. “You could expect decisions in two to three years.”
Each of its brands started a 10-year plan in 2021, with the first five years fully financed by the company. After this initial period, each brand will undergo a financial review to assess its viability.
“So far, we have delivered on our commitments,” Tavares said, citing the successful launch of the STLA Medium platform, debuting with the Peugeot 3008. He acknowledged that some product launches had been rescheduled due to changing market conditions, but emphasised that none had been cancelled.
Depending on its financial strength, the 2026 review might entail decisions to sell or even closing any weak brands to focus on higher-performing ones, even though many share platforms across the brands to ensure manufacturing efficiency, and some share showrooms.
Some brands like Alfa Romeo, DS and Lancia, have struggled in recent years.
The review announcement comes as Stellantis, the fourth largest vehicle manufacturer in the world, reported a 10% drop in global shipments for the third quarter of 2023, with the company delivering 1.14 million vehicles in that period – 279,000 fewer than the same time last year.
North America was particularly hard hit, seeing a dramatic 36% decline in shipments, while the “Enlarged Europe” region, which includes the UK, saw a 17% dip.
Earlier this year Tavares said he would order a review of its vehicle manufacturing sites in the UK due to the pressures caused by the ZEV Mandate.
As the automotive market evolves, Stellantis’s focus will likely be on prioritizing its strongest brands to navigate these challenging times and meet the goals of its Dare Forward 2030 plan.
