Stellantis CEO Carlos Tavares is ready to give ten years to Alfa Romeo, Chrysler, and other struggling brands to prove they can sell cars for profit.
Since the merger between FCA (Fiat Chrysler Automobiles) and PSA Groupe (Peugeot S.A.) partnered to form Stellantis, the Dutch-based firm’s CEO Carlos Tavares has been making long-term plans to sustain the future of the acquired brands.
“We’re giving each a chance, giving each a time window of ten years, and giving funding for ten years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications,” said Tavares in regards to Alfa Romeo, Chrysler, Lancia, etc.
Alfa Rome, for instance, has been struggling hard to find recognition in the global market. Even after being in the business for more than a century (they just celebrated their 110th birthday) and also having a cult following, the brand can’t compete with the most successful premium brands today.
Even after all this, Tavares sees extreme potential in the company and says that it still has great value in the eyes of other car companies who were willing to acquire it in the past few years. Notably, he has named Alfa as one of the three premium brands under Stellantis.
Tavares has assured the Italian car manufacturer of fully financial backup for a 10-year core model strategy. Although the plan still needs to be worked upon, Tavares says that it will involve electrification for sure, but in a dynamic process.
Talking about the scope of improvements, Stellantis’ CEO suggested improving the communication process between the brand and the potential customers. “There is a disconnect with products, history, and who we’re talking to. We need to fix the distribution and understand to whom we’re talking and which brand promise we’re talking to them about,” said the CEO.
Currently, Jean-Philippe Imparato is the CEO of Alfa Romeo. Under his administration, the brand has already gone through some significant changes; for instance, the rear-wheel-drive powertrain that provided the platform for Giulia and Stelvio is soon to retire.
The exciting part about this is that plug-in hybrid and fully electric powertrains could now make their way up top and could be a breakthrough for the brand. The Alfa Romeo Tonale, the brand’s latest crossover SUV, is also set to release next year and could bring a major sales hike.
Meanwhile, Chrysler should benefit from Stellantis’s shared platforms. Using those, the struggling American brand should launch many new vehicles in the coming years, including plug-in hybrids and EVs.
