Business

Dossiers on the table for the new CEO: brands, duties and new technologies. How Stellantis faces the automotive storm

by Mario Cianflone

 Antonio Filosa

4' min read

4' min read

There are many knots to untie on the table of Antonio Filosa, the new CEO of Stellantis, who arrives not only at a time of transition and difficulty for the Franco-Italian group, but above all in the midst of the perfect automotive storm, the one that will determine who, among the European brands, will go the way of Nokia. And a helmsman was urgently needed, since never before had a multinational been seen without a helmsman for months at a critical moment in history.

And in the dossier there are some short-term and other medium- to long-term points that need to be addressed at a strategic level.

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First of all, Antonio Filosa has to deal with the node of the USA, and it is no coincidence that he comes not only from the leadership of the iconic Jeep brand (the strongest of the entire group) but of North and South America. Here two issues open up: one linked to the brands, Jeep and Ram, which are not performing as they should, and an industrial-geopolitical one linked to duties, given that Stellantis assembles in Mexico for the USA, has plants in Canada and Brazil and is a sales superpower. It will therefore be necessary to review and fully implement plans for new electrified models based on two new architectures: STLA Large for large electric and hybrid cars and STLA Frame dedicated to the most important vehicles for the States: pick-ups.

With the tariff issue, Stellantis will also have to tackle the issue of relocation of models and brands because with the tariff war the going gets tough.

The second knot, perhaps the most important and difficult one, also because it has a multiple development, is that of Chinese competition, which relates to product strategy, technological research and positioning. It must be said that Stellantis has Leapmotor in the house, and therefore a foot in the Chinese system, and above all an interesting technology, more strategic than electrics: the Extended Range super hybrid powertrans. Technology that is becoming the battering ram for companies like Byd and Chery to conquer the European market not with electrics, which don't sell as assumed, but with Phevs. And this is crucial in Europe, grappling with a difficult energy transition desired by EU policy but poorly adapted to consumer needs.

And to remain in Europe, two crucial and interconnected questions arise: the survival of certain brands and the fate of the Italian plants, at least more delicate than the group's industrial structure.

Stellantis boasts some strong regional brands such as Peugeot, Citroën and Fiat. The House of the Lion, perhaps the most symbolic, was the first to benefit from the new STLA Medium architectures; Citroën, with the C3, seems to be heading for a relaunch that also includes models such as the new C5 Aircross, which is also hybrid and electric. Fiat, on the other hand, with the Serbian-made Grande Panda, recently also a Mild Hybrid, and with the variants planned on the low-cost Smartcar platform, could regain share and emerge from decline. Don't expect much from the 500 hybrid at Mirafiori: a buffer model, a 12 volt super mild hybrid with a manual gearbox. It will serve to make a couple of years at 100,000 units a year and ferry Mirafiori towards the new generation, which should be based on the brand new STLA Small platform that will debut next year on the Peugeot 208. Fiat, for Filosa, is also strategic for South America where it continues to have success with models made in Brazil.

Among the brands constantly attempting a relaunch is Alfa Romeo, whose fate is linked both to the eventual success of Tonale and Junior, and to the forthcoming Stelvio and Giulia to be built in Cassino on STLA Large architecture. But here the timing has to be understood: they are expected in 2026 but could slip. And that would be a problem because in the meantime the Chinese are running and taking over and the Germans are certainly not standing idly by.

Other brands, on the other hand, are struggling and could perhaps be put up for sale, despite constant denials to that effect. We are talking about Maserati, which is tempting Chery, and Ds, which has never really taken off. But also at risk are Abarth and Lancia. The former has opted for full electric and battery-powered Abarths are not selling, they have been rejected by fans of the brand. So much so that the top management is considering a thermal conversion of the 500 and 600.

Lancia on the other hand is struggling with the new Ypsilon, but continues to struggle with relaunch and image operations such as a return to rallying. And production of the new Gamma is expected to start in Melfi. Melfi itself will be a crucial node whose fate is entrusted to a model that will decide its survival: the new Jeep Compass (hybrid or ev based on the STLA Medium). In short, a single model is entrusted with the fate of the well-known US brand, the group's most global one, and of a factory where there is already the new DS No. 8 (but we do not expect big numbers from the DS brand) and the aforementioned new Lancia.

IIn the end, Filosa has to deal with a crucial dossier: software with all the digital and artificial intelligence. This is where the automotive game is being played as it has entered the era of the software-defined vehicle, and it is a difficult challenge because the Chinese rule the digital car value chain, both in terms of user interfaces and car and battery management, while European groups such as Stellantis and Volkswagen on software have not yet been able to express themselves in a manner aligned with the historical value of their brands.

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