Despite claiming that the company remains committed to all of its brands, Stellantis hasn’t shown much support for struggling marques
Stellantis $STLA (STLA) and its 14 international car brands have been having a rough time of it recently. Jeep has witnessed plummeting sales in America, struggling marques have been threatened with the chop in Europe and the heir to the Chrysler family has warned that he is the only person who can save the brand. Now, Stellantis has hit back at such fearmongering, claiming that it’s not for sale and it’s committed to all 14 of its brands.
Last week, Stellantis (STLA) was issued with a 17-page proposal from Chrysler heir Frank B. Rhodes, who argued that the brand would be much safer in his hands. However, the multinational giant has politely declined that invitation with a 75-word statement, reports the Drive. As the site explains:
The company sent a response, but instead of reaching out to him directly, a press release was sent out.
“Stellantis acknowledges the interest in its North American brands and reaffirms the Company’s commitment to its entire portfolio of 14 powerful, iconic brands, which were each given a 10-year timeframe to build a profitable and sustainable business,” the August 30 statement said. “Like the Jeep and Ram brands, Chrysler and Dodge are at the forefront of Stellantis’ transformation to clean mobility, benefitting from the group’s cutting-edge technology and scale. The Company is not pursuing splitting off any of its brands.”
Unsurprisingly, Rhodes was disappointed, but more so in how the communication was handled rather than the dismissive tone. “Since I sent the proposal to Carlos Tavares and [Chrysler and Ram CEO] Christine Feuell, I expected the courtesy of their reply to come directly to me. Instead, I have learned about their comments from my media friends.”
Despite claiming that the company remains committed to all 14 brands, Stellantis hasn’t shown much support for struggling marques in recent months. The automaker previously warned that brands like Lancia, DS Automobiles and Abarth could be reevaluated going forwards, adds Motor1, and company boss Carlos Tavares also claimed that any brand not making money would be “shut,” as Motor1 explains:
This reaffirmed long-term commitment from Stellantis comes only a month after the CEO hinted unprofitable brands could be killed. Carlos Tavares declared that automakers hemorrhaging money will get the axe: “If they don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money.”
Immediately after this statement was made, Reuters cited industry experts saying Maserati could be up for sale and that either Lancia or DS Automobiles could be phased out. However, it seems none of this is true since all 14 will continue under Stellantis. It really wouldn’t make sense to terminate Lancia now considering the Italian brand is finally getting new models and is once again expanding its presence outside its domestic market.
All this just makes it sound like Stellantis is committed to its brands... for now. The automaker has simply reaffirmed its 10-year plan for profitability, which kick started in 2021 when Stellantis was formed by the joining of Fiat-Chrysler and PSA Group. So does this mean Rhodes will be able to take back his family’s brand come 2031? We’ll have to wait and see.
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