Major automaker Stellantis plans to channel most of its investment dollars into four primary brands – Jeep, Ram, Peugeot and Fiat – as part of CEO Antonio Filosa’s turnaround strategy scheduled for announcement in May, according to five industry sources.
The global car manufacturer, ranked fourth worldwide in sales, will reveal its long-range plan in Detroit, emphasizing brands with the strongest international appeal and profitability. Sources indicate these four brands will see a “material increase” in their funding allocation.
The remaining 10 brands in Stellantis’ portfolio – the industry’s largest collection including Citroen, Opel and Alfa Romeo – will receive investment to develop vehicles using shared technology from the primary four brands, insiders revealed.
These smaller-volume brands, which previously received more balanced internal funding, will transition to regional or national focus in markets where they already show strength or growth potential, sources told reporters.
The automotive giant faces challenges regaining market position in both U.S. and European markets while confronting increased competition from Chinese manufacturers in Europe and developing markets. Earlier this year in February, the company recorded a 22.2 billion euro ($26.1 billion) writedown after scaling back electric vehicle initiatives.
This strategic overhaul at Stellantis, created in 2021 when Fiat Chrysler merged with PSA Peugeot, has support from major investors including primary shareholder Exor, three sources confirmed.
When contacted, Stellantis highlighted that its brands represent its strength and emphasized its combination of “global scale with deep local roots,” while declining to address the planned reorganization directly.
The company’s market value has dropped significantly to approximately 21 billion euros, barely exceeding electric vehicle startup Rivian’s $21 billion valuation and representing less than half of Volkswagen’s worth.
Industry experts and investors have suggested Stellantis should eliminate certain brands, particularly those with overlapping European presence, to reduce costs and improve efficiency. Brands like Lancia, DS, Citroen and Opel have been mentioned as potential candidates for closure.
However, Filosa, who assumed the CEO role last year with instructions to reverse the company’s declining performance, opposes this approach, viewing these brands as valuable for specific regions or major national markets, four sources indicated.
“Some of those brands could prove useful to the group in the future, should market conditions evolve,” said Marco Santino, a partner at consultancy Oliver Wyman, adding that once a brand had been closed it was “very hard to bring it back to life.”
Previous CEO Carlos Tavares, who oversaw the merger, publicly rejected closing any brands. Following his departure in December 2024, chairman John Elkann concentrated heavily on determining which brands possessed viable futures.
Filosa’s strategy will prioritize investment in Jeep, Ram, Peugeot and Fiat as the brands that “really matter” due to their superior sales numbers and profitability, one source explained. His predecessor had maintained that all brands should receive more equal investment distribution, the source added.
The new approach will deploy brands like Citroen, Opel and Alfa Romeo strategically in particular countries and market segments, four sources confirmed.
Regional brands may utilize platforms and technologies created by the core brands while incorporating unique internal and external design elements and performance characteristics to maintain distinctive identity, a fourth source explained. Rebranding certain models for specific local markets represents another option under consideration, two sources noted.
Earlier this month, reports emerged that Stellantis was conducting advanced discussions with Chinese partner Leapmotor to jointly create an Opel-branded electric SUV, potentially demonstrating how regional brands could share underlying technology while preserving individual brand characteristics.
A senior Stellantis executive stated the plan’s long-term success would depend more on strategic brand deployment across different markets to gain share rather than reducing the portfolio size.
Stellantis has maintained plans for most models to utilize a limited number of shared “multi-energy” platforms supporting both fully electric and hybrid or gasoline powertrains. However, this approach was designed for a rapid electric vehicle transition that never materialized, according to a former top executive.
While Stellantis might eventually discontinue some brands, analysts noted that automakers historically resist such moves unless absolutely necessary, as General Motors demonstrated with Saturn and Pontiac during its 2008 bankruptcy proceedings.
“At some point Stellantis may have to sunset some brands. But they’re going to have to make that decision based on the forward performance of the core brands,” said Larry Dominique, a consultant and former head of the Alfa Romeo brand in North America. In the immediate term, executives “have to focus on the brands that matter,” he added.
