As Stellantis (NYSE: STLA) chairman John Elkann interviews candidates for the next CEO, a major decision looms: how many of the automaker’s 14 brands have a viable future?
With a sprawling portfolio inherited from the 2021 Fiat-Chrysler and PSA merger, Stellantis faces a complexity challenge. Unlike competitors such as Volkswagen (ETR: VOWG_p) and Toyota (NYSE: TM)—which focus on a few core brands—Stellantis juggles a diverse lineup ranging from bestsellers like Jeep, Ram, and Peugeot to struggling marques like DS, Lancia, and Alfa Romeo.
Key Issues Facing Stellantis’ Next CEO
1. Streamlining the Brand Portfolio

Elkann prioritizes brand consolidation, believing that maintaining all 14 brands may hinder efficiency and profitability.
Former CEO Carlos Tavares argued that every brand had a future, but his departure in December leaves room for new strategic shifts.
Analysts see Alfa Romeo, DS, and Lancia as vulnerable, while Chrysler and Dodge may survive due to their niche appeal in the U.S. market.

2. U.S. Market Struggles

Stellantis’ Jeep and Ram brands remain strong performers, but its U.S. margins and sales are slipping.
Dodge and Chrysler sold fewer than 150,000 units each last year, despite their established brand recognition.
A potential brand consolidation in North America could improve profitability and marketing efficiency.

3. European Market Challenges

Despite being Europe’s second-largest automaker behind Volkswagen, Stellantis lacks a dominant flagship brand.
Peugeot, its top-seller, held only a 4.9% market share in 2023.
Unlike VW or Toyota, Stellantis has low corporate brand recognition, further complicating its competitive positioning.

4. No Clear Path in China

Stellantis exited its Jeep joint venture in China three years ago and has no plans for a relaunch.
With fewer expansion opportunities in China, Stellantis’ growth strategy will likely focus on North America and Europe.

Investor Sentiment and Market Reaction

Investors like Fabio Caldato of Acomea SGR see a brand reshuffle as a positive restructuring move.
Elkann seeks a CEO ready to take bold decisions, signaling that a significant brand consolidation may be on the table.
Stellantis maintains that each brand has plans for new products, though market performance will ultimately dictate survival.

Takeaway: What’s Next for Stellantis?

The next CEO’s strategic vision will determine whether Stellantis maintains its diverse brand lineup or consolidates for efficiency.
The company’s ability to improve U.S. margins, reinforce its European positioning, and navigate a post-China strategy will shape its long-term growth and stock performance.

For a data-driven analysis of automakers’ financial health, check out the Key Metrics (TTM) API for insights into Stellantis’ valuation, revenue, and profitability trends.