Electric Cars

Stellantis is undertaking a comprehensive evaluation of its extensive portfolio of 14 automotive brands, a move that could see some familiar names disappear from its global lineup. This strategic review aims to identify and retain only those brands with strong long-term prospects, particularly in the competitive European market where several marques are experiencing declining sales and overlapping market segments. The decision comes as the company seeks to enhance efficiency and consolidate its market position.

Under the leadership of its new CEO, Antonio Filosa, Stellantis is meticulously examining each brand's performance and potential. This marks a significant shift from the previous tenure of Carlos Tavares, who opted to keep all 14 brands intact. Filosa's approach prioritizes volume growth and operational streamlining, suggesting that underperforming brands may face discontinuation. This rigorous assessment reflects the company's commitment to adapting to evolving market demands and optimizing its brand strategy for future success.

Reports from informed sources indicate that several European brands are particularly vulnerable in this review. Data from the European Automobile Manufacturers' Association (ACEA) highlights a challenging period for some, with DS Automobiles experiencing a 21.2 percent drop in registrations and Lancia seeing a significant 68.3 percent plunge through October 2025. Maserati, despite its luxury appeal, also recorded a 17.1 percent decline in registrations, fueling previous rumors about its potential sale, which the company has consistently denied.

In contrast, Stellantis's larger brands such as Peugeot, Citroën, Opel, and Vauxhall have demonstrated stronger sales performance, collectively accounting for a substantial portion of the European market. Alfa Romeo also outperformed some of its struggling counterparts. This disparity in performance underscores the necessity of the current brand evaluation, as Stellantis aims to reallocate resources and focus on its most robust and profitable brands. The review will also consider strategies such as developing more affordable models, adjusting electric vehicle sales targets, and boosting fleet sales to achieve greater market penetration.

The ultimate outcome of this brand assessment remains to be seen, but it is clear that Stellantis is prepared to make difficult choices to secure its long-term stability and growth. Even if some brands are phased out, Stellantis is likely to retain a broader brand portfolio compared to competitors like the Volkswagen Group, which manages a diverse range of marques including VW, Skoda, Audi, and Bentley. This strategic realignment is crucial for Stellantis to navigate the complexities of the global automotive industry and maintain its competitive edge.

The European Union, often characterized by its strict regulatory framework, is reportedly easing its stance on the future of combustion engines. Historically, automakers have faced increasing pressure from stringent fleet emission targets, compelling them to prioritize electric vehicles (EVs) despite their often narrow profit margins.

However, a significant change is on the horizon. Earlier this month, indications emerged that the sale of new internal combustion engine (ICE) vehicles would be permitted beyond the initially planned 2035 cutoff. Now, sources suggest that ICE technology might persist even further, potentially into the 2040s. According to reports from the German newspaper Bild, citing Manfred Weber, head of the European People's Party (EPP), the effective ban on combustion engines is set to be removed indefinitely. This agreement, solidified in recent meetings, revises the mandatory CO2 emissions reduction target for car manufacturers' fleets to 90 percent for new registrations from 2035, instead of the original 100 percent. Crucially, no 100 percent target will be imposed from 2040 onwards, effectively eliminating the technological prohibition on combustion engines. This means that all engines currently manufactured in Germany can continue to be produced and sold.

This revised policy means that the original mandate requiring all new cars sold in the EU's 27 member states to be entirely CO2-free by 2035 will be relaxed. The new 90-percent reduction target offers manufacturers more flexibility, allowing them to integrate combustion engines into plug-in hybrids or use them as range extenders in electric vehicles. This strategic pivot by the EU is widely seen as an acknowledgment that the initial ban was perhaps premature. The persistent advocacy from major automakers, many of whom opposed the 2035 deadline (with notable exceptions like Volvo and Polestar), appears to have influenced this decision. The ramifications of Europe's choice will extend globally, benefiting non-EU markets with continued powertrain variety. Maintaining combustion engine production in such a significant market enables manufacturers to sustain economies of scale and safeguard numerous jobs within the engine manufacturing sector.

This policy adjustment reflects a more balanced approach to environmental goals and industrial realities, demonstrating a commitment to supporting innovation while maintaining economic stability within the automotive sector. It underscores the dynamic nature of policy-making in response to technological advancements and industry feedback.