Stellantis will no longer let a single one slip: the brand that loses money will disappear

Although we often don’t take it into account, brands belong to large business groups that bring together several of them. Many groups are divided into different brands, even in the same markets. Sometimes these brands were born within the business group they belong to, but on other occasions they are brands that have been acquired or that have come through mergers of groups. This is the case of Stellantis, which was created a few years ago through the union of several business groups.

This has meant that under the Stellantis banner, up to 14 different brands come together, which have had different origins and now sit under the umbrella of this large multinational. The brands that belong to the group are all quite well known and all have a long track record in the market, so you have probably heard of every one of them.

These brands are Citroën, Fiat, Opel, Vauxhall, Peugeot, Abarth, , Lancia, DS Automobiles, Alfa Romeo, Maserati, Ram, Dodge, Chrysler and Jeep. Between them, they add up to many different models, but also many others that are identical or very similar. So they end up competing against each other. And this, of course, has consequences.

There are Stellantis brands that still turn a profit and that have models that sell well and are profitable. But there are others that have been fading into oblivion and that buyers don’t consider when choosing their new cars. For example, Lancia has been on the Italian market for a long time with a single model. It is currently renewing its range, and we have already seen the Lancia Ypsilon, which is built in Zaragoza.

But even so, it could be one of the brands that fail to reach the minimum that Carlos Tavares, the group’s CEO, wants to demand. Stellantis’s poor overall results could lead to some of these brands ceasing to be under the group’s umbrella.

Does this mean they will disappear? Nothing has been said about this, but the strategy could be to sell these brands and get rid of these obstacles that drag down the group’s profitability. For the moment, there is only a fairly serious warning from Tavares. The future of several of Stellantis’s brands hangs by a thread and, it seems, the CEO will not hesitate to get rid of these loss-making brands.