Maserati and Alfa Romeo are facing severe sales declines, with their performance weakening significantly. The 25% tariffs on imports imposed by Trump have further exacerbated the situation, prompting Stellantis to appoint business advisors to devise a strategy to save these brands. The tariffs have affected them because they lack production bases in the United States.
Alfa Romeo and Maserati are seen as an excellent partnership since both are Italian manufacturers producing sports cars with rich heritage, although one is more luxurious than the other. However, their performance suffered considerably in 2024, and the tariffs might lead Stellantis to part ways with Maserati.
Decline in Maserati and Alfa Romeo Sales
Maserati's sales have dropped significantly in the U.S., now accounting for 35% to 40% of its global sales in 2024, down from 50%. This has led to a loss of over $285 million for the company since the U.S. is a crucial market for luxury cars. Similarly, Alfa Romeo saw a sales decline of 10% to 15% in 2024, selling only 65,000 units.
The tariffs have forced Stellantis to reconsider the viability of these brands in the U.S., severely impacting their cost-effectiveness and competitiveness.
Ongoing Strategy Reevaluation
In response to these challenges, Stellantis has engaged McKinsey & Company to explore strategic options for Alfa Romeo and Maserati. Potential strategies include:
Partnerships: Collaborating with other automakers to share technology and reduce costs. Reports suggest that Maserati and Alfa Romeo are discussing using Chery Auto's advanced EV platform technologies for upcoming electric models.
Asset Liquidation: Selling Maserati to a new owner. Rumors indicate Chinese automakers' interest in acquiring Maserati, although Stellantis Chairman John Elkann is hesitant about selling to Chinese companies.
Restructuring: Adjusting production plans and focusing on markets less affected by tariffs.
Could These Brands Become Chinese-Owned?
There are rumors that China's Chery Auto is interested in purchasing Maserati, possibly including Alfa Romeo as well. Chery aims to expand its presence in Europe and is keen on utilizing Maserati's advanced technologies to enter the luxury car market.
The Italian duo isn't the only concern for Stellantis; the entire group faces challenges as North American sales plummeted by 25%, with net profits dropping by 70% last year. The first-quarter numbers were disastrous, highlighting broader impacts from Trump's tariffs beyond just Alfa Romeo and Maserati due to many products being manufactured in Canada and Mexico.
Could a Chinese or perhaps Japanese or Korean company manage Maserati or even Alfa Romeo better than Stellantis? Selling Maserati remains a contingency plan while Stellantis seeks solutions to save it.
It's unfortunate to see Maserati's esteemed brand struggling so much, recalling its rich history in racing and crafting luxury sports cars imbued with Ferrari's spirit and engines.
Speaking of Ferrari, news of Maserati’s potential sale might spark investor interest in acquiring Ferrari as well. However, Ferrari remains secure due to its distinct market segment compared to Maserati. Interestingly, the Italian government welcomes a decision to sell Maserati to a Chinese company. We'll wait for further developments regarding this iconic Italian brand.
