Stellantis, the multinational automotive conglomerate, is evaluating cost-cutting measures that could include the discontinuation of underperforming brands. This is especially relevant for Maserati, which has faced significant challenges recently. Here’s a detailed breakdown:

Current Situation

• Sales Decline: Maserati’s global sales have plummeted by 50% year-over-year, dropping from 15,300 units in the first half of 2023 to just 6,500 units in the same period of 2024.
• Financial Losses: The brand has reported an operating loss of $88.6 million for 2024. The losses are attributed to the discontinuation of key models like the Ghibli and Quattroporte sedans and the Levante SUV, along with sluggish sales of newer models like the GranTurismo and Grecale SUV.
• MC20 Supercar Sales: Only 97 units of the MC20 supercar were sold in Europe last year, highlighting ongoing issues with the brand’s high-end offerings.

Strategic Considerations

• Stellantis Executives’ Comments: CEO Carlos Tavares and CFO Natalie Knight have indicated that brands not achieving profitability could be cut. Knight acknowledged Maserati’s struggles and hinted that the brand’s future might involve finding a better home.
• Financial Performance of Stellantis: The conglomerate reported its first significant loss since its formation in 2021, with a 48% drop in net income for the first half of the year. This financial strain is prompting a review of brand performance and potential restructuring.

Potential Outcomes

• Possible Sale to Ferrari: Ferrari, which previously owned Maserati from 1997 to 2005, is seen as a potential buyer. Ferrari’s strong financial position and expertise in high-performance luxury vehicles make it a suitable candidate to take over Maserati. The investment in electrification by Maserati could also be an attractive asset for Ferrari.
• Product Delays: If Stellantis retains Maserati, the brand’s new models might face delays. The replacement for the Levante is now expected to appear in 2027, and the all-electric Quattroporte successor is projected for 2028, which is a three-year delay from its original timeline.

Looking Ahead

• Strategic Changes: Stellantis may need to make significant changes, including product delays or exploring a sale of Maserati, to address the current financial challenges and realign its portfolio with profitable ventures.

Maserati’s current struggles are part of a broader evaluation by Stellantis on how to optimise its brand portfolio amidst financial pressures. The future of Maserati could involve a strategic sale or significant restructuring to address its performance issues.