Everyone knew it was coming. It wasn’t a secret. Stellantis, the automaker formerly known as, variously, PSA Peugeot Citroën, Chrysler Corp, DaimlerChrysler, and Fiat Chrysler Automobiles (plus GM Europe, actually), couldn’t possibly support every brand equally. Something would have to give. Now, thanks to a new report, there’s some sense of what’s giving and what’s taking.
There’s good news and bad news here, depending on what brand you hoped would survive. They’re all going to still be here, just some are now secondary brands. A lot of legendary brands are about to become secondary brands.
The Morning Dump cannot see into the future, but it didn’t take a Ouija board to see that Porsche was going to eject its Rimac and Bugatti holdings. What maybe caught me by surprise was the excitement that Chinese brands would have for hybrids, but there’s more of them coming out in Beijing this week. In the UK, they’re showing electric vans.
The Core Brands Make Sense
Back in 2024, I wrote a post with the somewhat tongue-in-cheek headline “A List Of Brands Stellantis Might Kill Ranked From ‘Jeep’ To ‘Most Likely’” based on the premise that having all of these brands tied up into one automaker, all getting special treatment, probably didn’t make sense.
I listed the safe brands as Jeep, Peugeot, Fiat, Ram, Citroën, Dodge, and Leapmotor. Technically, based on this latest report from Reuters, all of the brands are safe, but not all of the brands are the pillars of the company. New CEO Antonio Filosa has to shake things up somehow:
Filosa will present a new business strategy in Detroit May 21. His plan concentrates investment on Jeep, Ram, Peugeot and Fiat as the brands that “really matter” because of their higher sales volumes and profits, a source told Reuters.
Under the new strategy, Stellantis will use brands such as Citroen, Opel and Alfa Romeo tactically in specific countries and market segments, four sources said.
Options for regional brands include using platforms and technologies developed by the core brands, adding their own internal and external design features and handling to give them a distinctive look and feel, the fourth source said. Rebadging some models for specific local markets is another solution under consideration, two of the sources said.
That ‘really matter’ quote is rough. It’s also probably correct, right? The French government still owns part of Stellantis and one of the brands is going to have to be French, and Peugeot is the big one. For DS and Citroën this isn’t even going to be that big of a change.
Fiat makes sense as it’s the OG brand, although the lineups are little different these days, and Fiat isn’t the full-line automaker it once was. Of all the traditionally Fiat brands (Alfa, Maserati, Lancia), it’s Alfa Romeo that’s shown the most growth recently.
Jeep was always going to the brand that sticks around as it has the most brand value, plus a slate of (traditionally) high-margin vehicles. The concept of it being a brand that makes platforms that then get shared is interesting as, normally, Jeep has the only-for-Jeep Wrangler and then a bunch of other cars built on borrowed platforms. Will Dodge benefit here? Maybe? Chrysler?
Ram is probably the biggest standout here, as I tend to think of Ram as a very American brand. It’s also, if done correctly, profitable enough to cover up for losses from other parts of the company. Ram extends beyond our borders, though, and has prominence in Latin America as well. Heck, they even sell Ram trucks in Australia these days.
The big open question to me is what happens to the “regional brands?” Does it make sense to keep selling Alfa Romeos and Fiats in the United States? Sales continue to be dismal and I don’t see that turning around.
Maserati isn’t mentioned at all in this report, which only makes me more convinced that Stellantis is going to sell the brand. I mean, selling your low-volume luxury sports car brand is all the rage now.
Porsche Sells Shares In Rimac And Bugatti
Bugatti was maybe the last great example of a Volkswagen with so much money it didn’t know how to spend it. Now, Volkswagen needs that money, and so it’s selling its shares in Bugatti-Rimac and Rimac. I wrote about this at length last year if you’re interested in the background. The short version is that Porsche, having invested in Rimac and then quasi-sold Bugatti to a Porsche controlled joint venture with Rimac, seemed to want out of the agreement.
So who owns the company now? Here’s Porsche’s explanation of what’s going to happen:
Porsche and Rimac Group established Bugatti Rimac as a joint venture in 2021 to serve as home to the iconic Bugatti brand. In this joint venture, Porsche holds a minority stake of 45%, Rimac Group owns 55%. Porsche also holds a 20.6% stake in Rimac Group. As part of the transaction announced today, Porsche will fully divest its equity stakes in Bugatti Rimac and Rimac Group to the HOF Capital-led consortium. This includes BlueFive Capital as its largest investor, as well as a group of institutional investors across the US and EU. Following completion, Rimac Group is set to take control of Bugatti Rimac and form a strategic partnership with HOF Capital and BlueFive Capital to support its continued growth. HOF Capital will additionally join Rimac Group as the largest shareholder alongside Mate Rimac, founder of Rimac and CEO of Bugatti Rimac.
And who is HOF Capital and BlueFive Capital? Bloomberg has some details:
BlueFive is a private equity firm run by former Investcorp executive Hazem Ben-Gacem. HOF Capital was co-founded by Onsi Sawiris, who’s the son of billionaire Naguib Sawiris and grandson of the late Egyptian construction magnate also named Onsi Sawiris.
Got it.
OMODA & JAECOO Maybe Has Another Hit On Its Hands
If you live outside of the United Kingdom, you might no know the brands OMODA and Jaecoo. If you live in Bristol, you’ve probably seen a lot of them. While Chinese EV automakers are having luck in the UK, the hybrids have been especially popular lately. It’s no surprise, then, that the two related brands used the Beijing show this week to show off a new hybrid:
On display was the OMODA 4, a key addition to the brand’s evolving global line-up and a clear expression of its future design and technology direction – and confirmed for UK launch in Q4 2026. It was showcased with a full hybrid SHS-H powertrain specification, which was first introduced on the OMODA line on the OMODA 5 SHS-H at the beginning of the year.
Positioned as a compact, urban-focused model, OMODA 4 combines sharp, contemporary styling with a strong emphasis on digital integration and everyday usability. Its exterior reflects the brand’s progressive ‘art in motion’ philosophy, while its connected, user-centric interior focuses on intuitive technology, integrated displays and seamless interaction. Advanced connectivity and intelligent driver assistance systems further underline its appeal to modern, tech-focused customers.
It’ll be interesting to see how cheaply the company can price this.
Behold, The Chery Delivan
I may have made a little joke about Chery calling its latest commercial van for Europe the “Delivan” because I can only hear it as a van for a sandwich-making operation, and not the intended portmanteau.
Chery is the Chinese automaker that also owns OMODA and Jaecoo, in case you were curious. While its Chinese arm was in Beijing showing off its new global compact, the European arm was at the van show in Birmingham showing off this:
As the first expression of the FSCV strategy, DELIVAN introduces a new generation of intelligent, purpose-built commercial vehicles for urban logistics, last-mile delivery and fleet operations. It also confirms its entry into the UK and European markets as an OEM, offering a complete end-to-end solution spanning vehicles, charging, service, telematics and digital programmes, as well as aftermarket, warranty and lifecycle support.
I love a big van, and this one looks cool.
What I’m Listening To While Writing TMD
One more Coachella performance? One more Coachella performance. It’s David Byrne doing the Talking Heads classic “Slippery People.”
The Big Question
What happens to Dodge and Chrysler now?
Top photo: Stellantis
Honestly it’s time to shut down Stellantis and sell Jeep off to the highest bidder, how about Honda?
Stellantis focusing on just a handful of brands isn’t a terrible one, but it is also a short sighted plan.
Obviously Jeep is the crown jewel. But they should still share some of the Jeep platforms with Ram and Dodge and some of the other divisions. Same deal with Peugeot. If they get a mid sized sedan or crossover, spread out the costs of developing it by giving Chrysler or Lancia a vehicle off that platform. They can’t repeat the Alfa Tonale/Dodge Hornet fiasco, but if there are divisions that don’t overlap markets, they should share designs. Absolutely no reason why Chryslers and (just an example) Lancia shouldn’t be sister brands.
Jaecoo is still such a terrible name to me. So many of the Chinese car brands sound like some random company on Amazon selling unbranded Bluetooth headphones.
That’s because they probably are the random companies on Amazon selling unbranded Bluetooth headphones.
After reading the comments it’s pretty clear that Dodge and Chrysler get the absolute minimum investment required to not have to buy back dealership franchises. Unless some sucker is willing to buy those agreements, the brands are a debt that must be paid. Eventually someone will find a way to shift the burden to an instrument designed for good isolation during bankruptcy and stiff the franchisees. Feels Karmicly correct based on my brief contact with their employees. I’d feel bad for the mfg employees if I thought they still care what badge they stick on the minivan.
Around here all the Chrysler/Dodge dealers sell Jeeps and Rams too, so I assume the franchisers make there money off of the trucks and suvs. There’s probably some behind the scenes agreement of one Pacifica for every three Ram allocations or something of the sort. I agree that it’s painfully obvious that Dodgge and Chrysler are minimally invested in. One of my local dealerships still has advertisment posters up for the original SRT8 300 and the 2011 200, along with other posters from over a decade ago, back when those brands had a full lineup.
Turn Chrysler into AMC…
“Introducing the 2026 AMC Eagle!”
Not quite sure how much more they can de-prioritize Dodge and Chrysler and still have any sales to speak of. Chrysler sells 1 car that is literally 10 years old (it debuted in 2016), and Dodge has received 2 mediocre models in that same time frame. Everyone could tell the new charger and the hornet were half baked, and the sales reflect that.
If you’re not going to put any sort of priority on them might as well just kill them as brands. Think they could sell the Pacifica as a Fiat or a Jeep?
I am shocked there isn’t more of a market for these walking-dead brands as a wedge for Chinese manufacturers to get cars into the US market… beyond Volvo and Buick.
I can see Alfa leaving the US market under this plan. They are doing well in Europe, especially the new Junior, but they could just never get traction here and overcome the reliability stigma. Which is really too bad because the Giulia and Stelvio are fundamentally really good cars and are much more reliable than people think. My 2018 Stelvio has been excellent, and most people on the forums have had a similar experience.
The US dealers appear to be dropping like flies though, especially since the beginning of this year, which is never a good sign.
Guess my future Quadrifoglio will be that much cheaper…
They would’ve done fine if the 4cyl Guilia had been rear wheel drive. Then it competes with BMW. Front wheel drive competes with Acura, Honda, etc. Those buyers don’t want to fool around with Italian cars.
good news! they were all RWD or AWD
TBQ: Well based on this quote
“using platforms and technologies developed by the core brands, adding their own internal and external design features and handling to give them a distinctive look and feel, the fourth source said. Rebadging some models for specific local markets is another solution under consideration” a whole lot of half-assed, out of touch rebadges ala Hornet are on the way for Chrysler and Dodge.
Why the fuck is Ram a separate brand anyway? Just fold it back into Dodge LOL
The DS sub-brand is also stupid, except maybe as a top model of a regular Citroen (eg C3 DS, C4 DS, etc)
David Byrne’s “Like Humans Do” came with Windows XP
I really can’t believe those two stupid decisions lasted this wrong. Dodge Ram, Citroen DS.
Horribly stupid separating two intertwined things.
I will say all day that Stellantis should just stick Chrysler logos on the entire DS lineup and they would have an actual car company.
Agreed. Cheaper than trying to introduce a new brand in the US. Put that funky new headlight appearance on them and call it a day.
So many people still call their trucks Dodge Ram anyways. It never made sense as a separate brand.
I believe Ram was created so it would be easier to sell off that part of the business. Who knew at the time Dodge would become that?
I’m going to see David Byrne next weekend! I’ll ask him what he thinks about the future of Chrysler if I get a chance.
Dodge: Who cares? I won’t miss any of their current lineup and am only mildly curious where Durango buyers will migrate to.
Chrysler: Who now?
Do Fiat and Alfa still make sense in the US? Considering this is my absolute favorite game of fuck marry kill, I’m glad to play! Alfa? Ehhhh, I’d argue no. They’re nice, but we have plenty of executive luxury vehicles and no matter how good Alfas are (I adored my Giulia) they’re never going to do numbers against this very stacked field. Fiat would THRIVE if they gave us the right friggen products. The Grande Panda would do great, but Fiat being Fiat, I doubt they’d ever give us the good stuff…
Every time I see an Alfa, a Fiat or a Maserati, I think that person is either Italian or could not get financing at any other dealer.
It’s funny that Jeep has always had sketchy parent companies while being a successful brand.
Alfa should focus on being Alfa. Maybe in Europe they can continue with a Giulia successor, and I guess an SUV, but here, just make us a modern Spider. And don’t tell me they tried that with the 4C, that was a poorly designed car that was overpriced.
I’ll likely never own a Porsche, never mind a Bugatti. But still I’m a little disappointed to see Bugatti moved out from the VW umbrella. There’s so many start up $1M+ hypercar makers that it’s hard to care. But Bugatti was different because it had the weight of VW behind it, and that offered legitimacy. Now it’s no different than any other made up new brand.
If its for sale then it won’t be long before a Chinese brand buys it.
Man, that bass player is grooving. I’m inspired.
TBQ: Chrysler could embrace its weird pseudo-luxury image. Import French cars and crossovers and just badge engineer ‘em. Replace the fabric with whatever Chrysler’s version of pleather is, and call it a day. Make them all hybrid as thats where the market is. Ideally with the same drivetrain. Parts commonality is king (look at Subaru with their two power plants doing all the work or toyota’s 4 cyl hybrid)
“Rich Corinthian Pleather”