With 14 automotive manufacturers below its company umbrella, Stellantis is already an automotive juggernaut. Renault isn’t precisely small both, contemplating it owns the sports activities automotive model Alpine and the funds automaker Dacia. Regardless of reviews suggesting a possible tie-up, the 2 aren’t trying to be a part of forces. Talking on the Monetary Occasions’ “Way forward for the Automobile Summit” in London, Stellantis Chairman John Elkann (cited by Reuters) acknowledged: “We aren’t discussing any merger.”
That’s hardly a shock. Stellantis has sufficient to fret about as it’s. Carlos Tavares resigned in December 2024, and the corporate has but to call his successor. In accordance with a brand new Automotive Information report, Americas boss Antonio Filosa is the main candidate to take the reins, with an official announcement anticipated within the coming weeks.
The brand new CEO will face vital challenges as Stellantis manages a number of underperforming manufacturers. Chrysler is a shadow of its former self, whereas Lancia’s revival falls wanting expectations. There’s additionally DS Cars, a French luxurious model into which the corporate continues to pour cash with out tangible outcomes. Abarth’s transfer to go totally electrical raises considerations about its future. In brief, Stellantis has extra urgent priorities than dealing with a large merger.
Stellantis itself was born from a merger, fashioned in early 2021 when FCA and PSA joined forces to turn out to be a single entity. Partnering with Renault would have successfully turned Peugeot and Citroën from rivals into allies. Taking a look at this hypothetical state of affairs from one other angle, a Stellantis-Renault alliance may have led to extra European automobiles in america. Nonetheless, even when a merger is off the desk, Alpine is coming to North America later this decade.
A possible merger between Stellantis and Renault would have been additional sophisticated by Renault’s present ties to Nissan and Mitsubishi, each of that are struggling. Since Stellantis already has its palms full managing so many manufacturers, it’s comprehensible that Elkann dismissed merger rumors.
Stellantis faces challenges exacerbated by a 12-percent drop in shipments in 2024 on account of “momentary gaps in product choices.” As for the Renault Group, all three manufacturers posted larger gross sales final 12 months: Renault rose 1.8 p.c to 1,577,351 autos, Dacia elevated 2.7 p.c to 676,340 models, and Alpine climbed 5.9 p.c to 4,585 models.
Though a merger isn’t occurring, the 2 corporations share a standard concern. Stellantis Chairman John Elkann and Renault CEO Luca De Meo agree that small automobiles should survive in Europe. Nevertheless, they’re involved that more and more strict emissions laws are making gas-powered metropolis automobiles unprofitable. This can be a actual concern, additionally echoed just lately by the Volkswagen Group. We’ve already misplaced the Ford Fiesta, and the Focus is subsequent, with extra prone to comply with if laws doesn’t change.
Whereas the European Union just lately gave automakers extra time to adjust to emissions targets efficient in 2025, the principles will turn out to be even stricter by 2030. Simply 5 years later, the sale of recent automobiles with dangerous emissions can be banned completely within the EU.
Supply:
The Monetary Occasions through Reuters
