Jeep parent Stellantis ponders drastic action on struggling brand
Stellantis is going through another transition after naming a new CEO last month.
The merger between Fiat Chrysler and PSA Group in 2021 brought so much promise for the brand.
It created Stellantis (STLA) , a company with a portfolio of over 14 automotive brands, including iconic U.S. names like Chrysler, Jeep, and Dodge that, combined with its European counterparts like Citroën, Peugeot, Fiat, and Maserati, would offer an unrivaled global footprint.
But it has been a rough four years for Stellantis.
Related: Jeep, Dodge parent has no solution for this emerging problem
Under former CEO Carlos Tavares' leadership, Stellantis laid off American factory workers, shuffled its C-suite, and forced its U.S. brands to push products that American customers didn't like.
Stellantis and Tavares separated in December, leaving the conglomerate rudderless for about six months before the company made a late May announcement.
Last month, Stellantis named Antonio Filosa its new CEO, and it plans to elect him to the board of directors and make him an executive director in the coming weeks.
Filosa cut his teeth as Stellantis Chief Operating Officer of South America, where he has led its Fiat brand to much success while also boosting Peugeot, Citroën, Ram, and Jeep sales on the continent.
“I have worked closely with Antonio over the past six months, during which time his responsibilities have increased, and his strong and effective leadership spanning both North and South America at a moment of unprecedented challenge have confirmed the excellent qualities he brings to the role,“ said John Elkann, Stellantis executive chairman.
“Together with the entire Board, I look forward to working with him.“ Image source: Maserati
Stellantis is close to making a big decision about Maserati
While Filosa's tenure doesn't officially begin until Monday, June 23, part of the interview process for the gig involved his thoughts on the viability of each of the brands in the company's portfolio, according to a new report citing multiple sources with knowledge of the process.
Stellantis is considering the possible sale of its luxury Maserati unit, among other options, Reuters reported.
McKinsey, which is advising Stellantis on the matter, has also said divestment of its only luxury brand is a viable option.
Stellantis responded bluntly to the reports: "Respectfully, Maserati is not for sale," a company spokesperson said.
Related: Major U.S. automaker makes harsh decision in wake of tariff tussle
But low sales in North America was one of the reasons Tavares is no longer head of Stellantis. So is the fact that Maserati saw sales decline by more than half in 2024 to 11,300 units, while posting an operating loss of 260 million euros ($298 million) last year.
Maserati doesn't have any new model launches scheduled after Stellantis put its previous business plan on hold last year. Although the brand currently doesn't have a business plan in place, Brand Head Santo Ficili has said that one will be presented soon after the new boss starts on Monday.
Some board members apparently are not sure Maserati is a sustainable asset, however.
Stellantis has much bigger problems than Maserati
Shortly after President Donald Trump announced his reciprocal tariffs on U.S. trading partners, Stellantis temporarily halted production at its auto assembly factories in Mexico and Canada.
The Wall Street Journal reported that Stellantis would idle its minivan plant in Windsor, Canada, for two weeks and shutter its Jeep facility in Toluca, Mexico, for the rest of the month.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” Filosa told the Journal. “But we will quickly adapt to these policy changes and will protect our company, maintain our competitive edge, and continue delivering great products to our customers.”
Stellantis reported that total first-quarter U.S. sales decreased 12% year-over-year, despite a 16% increase in Ram brand sales and a 1% increase in Chrysler brand sales. Jeep brand sales saw a 2% increase.
The company reported total sales of 293,225 vehicles in the first three months of the year.
Related: Maserati launches program targeting Ferrari's elitist snobbery
