Luxury Car Brands Unite to Combat Declining Sales
Italian luxury car manufacturers Alfa Romeo and Maserati are poised to join forces in a strategic plan to reverse their declining sales and avoid potential extinction. Global car giant Stellantis is expected to unveil this plan within weeks, aiming to reduce costs by identifying ‘synergies’ in their future models.
Challenges Facing the Brands
Alfa Romeo and Maserati have experienced significant sales declines, with Alfa Romeo’s sales dropping by an estimated 20% last year, while Maserati saw a more than 50% decrease despite launching new models. Both brands are now operating well below their peak sales performance. In 2018, Alfa Romeo sold twice the number of cars it did last year.
The Proposed Strategic Plan
The plan, pending approval from incoming Stellantis CEO Antonio Filosa, involves more than just new model releases to boost sales. It includes sharing platforms and features between the two brands, optimizing organizational structure, adjusting their dealer network footprint, and assessing their manufacturing plants in Italy. According to Alfa Romeo and Maserati CEO Santo Filici, the strategic plan is nearing completion.
“We will have the new [Stellantis] CEO [on the] 23rd of June. There will be an announcement to define the alignment with him,” Filici explained. “Then after this time, we will go ahead with the presentation of the strategic plan of Alfa Romeo and Maserati, together finding synergies where is possible.”
Background and Challenges
Stellantis, formed in 2021 through the merger of Fiat-Chrysler and Peugeot-Citroen, gave its 14 brands a decade to prove their viability. The new strategy for Alfa Romeo and Maserati comes amid reports that Maserati’s sale was being considered, following comments from former Stellantis CEO Carlos Tavares that underperforming brands would be shut down. The US market is significant for both brands, with about 30% of Maserati’s sales and 15% of Alfa Romeo’s coming from there, making them vulnerable to US President Donald Trump’s new tariffs on imported goods.
Recent Developments
Alfa Romeo has reportedly delayed its next-generation Stelvio SUV to incorporate petrol engines, rather than introducing it as an electric vehicle. This decision follows reports that the production line for the new model is ready, but pre-production examples with petrol engines have not been built.
The collaboration between Alfa Romeo and Maserati is seen as a crucial step in their survival and potential recovery in a highly competitive automotive market.
