The company will invest in new products.
The merger between PSA Group and Fiat Chrysler Automobiles into Stellantis has put more than a dozen brands under one corporate umbrella. The two conglomerates hope that the merger will lead to cost savings, though it won’t achieve those by randomly cutting brands – on the contrary. Stellantis CEO Carlos Tavares told Automotive News Europe that every brand will be given a chance to succeed under the new organization.
Tavares said that Stellantis would support both brands and its factories by investing in new products, giving them an opportunity to “rebound” as the company searches for areas to save money. This calms questions about the future of some brands such as Chrysler and Lancia, both of which have been left to stagnate a bit. In the merger, Stellantis announced it’d group the 14 brands it controls into different cohorts based on their market position, and Stellantis put Lancia in the same premium category as Alfa Romeo and DS.
That doesn’t mean operations will continue as they have. Tavares told the publication that the company would have to become “smarter and more efficient.” However, he doesn’t detail what that means. Stellantis is also looking into its missteps in China, which will be a key focus for the automaker in the future as both FCA and PSA have suffered from dismal sales in the country. The refocus on new products and finding success in China will help shield any job cuts.
Stellantis now controls the fate of 14 brands, ranging from Dodge, Ram, and Chrysler, to Peugeot, Citroen, and Alfa Romeo. It’s easy to spot areas of overlap between the brands, which Stellantis will have to figure out in the coming months. The merger has put Peugeot’s return to the US into question, too, which was set to return here as soon as 2023.