Jeep maker Stellantis weighs sale among options for Maserati, sources say
Stellantis is considering a possible sale of its struggling luxury Maserati unit, among other options, two sources with knowledge of the matter said, as the automaker seeks to overhaul its sprawling portfolio of 14 brands.
Discussions over Maserati's future started before new CEO Antonio Filosa, who starts on Monday, was appointed last month, while Stellantis was steered by Chair John Elkann. The viability of the French-Italian company's 14 brands — which include Chrysler, Peugeot, Jeep and Alfa Romeo — was a priority for Elkann as he interviewed candidates to fill the CEO job.
Like other European carmakers, the world's fourth biggest automaker is facing hefty U.S. import tariffs imposed by U.S. President Donald Trump and struggling with stiff competition from Chinese rivals.
Stellantis hired consultant McKinsey early in April to advise it on the effects of the U.S. tariffs on Maserati and Alfa Romeo as the two brands prepare future plans. Stellantis affirmed then that it was fully committed to both brands.
However, a possible divestment of Maserati, its only luxury brand, is among the options McKinsey is exploring for Stellantis, the two sources told Reuters, adding the adviser's assessment was still in the early stages. They spoke on condition of anonymity because they were not authorised to discuss the matter publicly.
Asked for comment, a Stellantis spokesperson said: "Respectfully, Maserati is not for sale".
McKinsey declined to comment.
Filosa's predecessor Carlos Tavares, who resigned in December after a poor performance in the U.S. market, had refused to consider getting rid of any of the carmaker's brands.
But some investors and analysts say a streamlined portfolio would boost Stellantis' profit margins. Stellantis shares have lost two-thirds of their value since March last year.
Maserati's sales fell by more than half in 2024 to just 11,300 units and the unit posted an adjusted operating loss of 260 million euros ($298 million) last year. The brand currently has no new model launches scheduled as it waits for a new business plan, after its previous one was put on hold by Stellantis last year. Brand head Santo Ficili said earlier this month the plan would be presented soon after Filosa starts the job.
One of the sources said Stellantis has been coming to terms with the fact that it has too many brands, making it difficult for it to properly invest in all of them.
The carmaker needs to "set priorities," the source said.
Stellantis has not specifically mandated McKinsey to find a buyer for Maserati, but the mandate is to consider all options, including a potential sale, the second source said.
All options are on the table, the source said.
Stellantis' board has been divided over plans for Maserati, one source said.
Some board members think Stellantis is not in a position to sustainably re-launch Maserati and suggest selling it is the best option. Others think Maserati still has value and that selling its only luxury brand would be a huge reputational setback for Stellantis.
Chinese automakers, such as Chery, might be among those interested in buying European auto brands, to support their expansion in the region, where they still lack brand recognition among consumers.
This would be similar to SAIC's 2007 purchase of Britain's MG Motor or Geely's acquisition of Sweden's Volvo Cars in 2010.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
A company on Russia's doorstep that sent its war robots to Ukraine got a crash course in what soldiers need
A European defense firm's ground robots are being used by Ukrainian soldiers. The experiences there have led to key changes in its products, the Milrem Robotics' CEO told BI. He said Europe's militaries should be learning from Ukraine's fight in case Russia attacks. A military robotics company based in a NATO country bordering Russia says battlefield use of its machines in Ukraine provided valuable insight that led it to rethink its technology and how it could better meet wartime demands. Estonia 's Milrem Robotics makes autonomous ground robots that can be used to gather intelligence, evacuate wounded troops, dispose of explosive devices, and carry weaponry like machine guns. Its THeMIS model, which can carry a payload of up to 2,645.5 pounds and travel at up to 12 miles per hour, is in Ukraine, clearing mines, carrying cargo, and moving out injured soldiers. Kuldar Väärsi, the founder and CEO of Milrem Robotics, told Business Insider that Western weapons makers and militaries need to be learning from what's happening in Ukraine and that the company's experiences there have led to some changes in its products. Väärsi said that developments in Ukraine are "totally different" from peacetime, when weapons are used in training and exercises. The company has been closely watching for ways to make its robots better, both to help Ukraine and to help Europe if needed. One key area has been the simplicity of use. He said the THeMIS was "already quite simple and very easy system to control," but the needs on the battlefield meant it had to be even simpler. He said that in peacetime, equipment might only be used by experienced troops with training. "In Ukraine, in real war, you can't follow that," Väärsi said. "Basically, anybody who needs that equipment will use it, and the more intuitive and simple you make the user interface and you make the usability, the more certain you can be that actually it'll be properly used and efficiently used and it'll be useful for the troops." The electronic warfare battle in Ukraine, in which both sides are jamming and spoofing everything — drones, comms, GPS, and more— has also sparked big changes in uncrewed systems technology. "What we have learned and changed and implemented in our systems is everything related to EW, communication, and cyber," the Milrem CEO said. Evolutions in countermeasures like electronic warfare have led to developments like fiber-optic drones and AI-enabled drones that are resistant to enemy jamming. "What we can see as a trend in Ukraine is that technologies around communication change basically weekly," Väärsi said, referring to the combat systems that rely heavily on stable signals. The feedback from Ukraine means "we have changed quite significantly our design and our products," he said. Väärsi said the company was "very eager" to provide its systems to Ukraine it is based in Estonia, a country once part of the Soviet Union like Ukraine and a current Russian neighbor worried about the possibility of an attack on its sovereignty. Estonia is among the biggest defense spenders in NATO as a proportion of GDP and one of the countries sounding the alarm the loudest about Russia. "It's our mission to support Ukraine as much as we can, to help them win this war. And even if it's as little as sending our vehicles, then we should certainly do it," Väärsi said. He said it's a good business move, too. "If you look at it from the validation perspective, the equipment which doesn't justify itself in Ukraine, why should that be even necessary?" Milrem was founded in 2013, and Väärsi said that before this war, "quite a lot of people were talking about unmanned ground vehicles in defense," but there were also "lots of doubts around it." This war "has demonstrated that unmanned ground vehicles have a really important place on the battlefield," he said. Learning from Ukraine Many Western governments want their countries' battlefield technology in Ukraine so companies can learn how best to be ready for any potential conflict with Russia — something many European countries warn could happen. It's something many Western defense companies want too. Their products can be battle-tested and updated, proving their worth and increasing sales. Luke Pollard, the UK's armed forces minister, said last month:"If you are a drone company and you do not have your kit on the front line in Ukraine, you might as well give up." Väärsi said that Milrem Robotics has a team that regularly visits Ukraine, meets military units, and works directly with the operators who use the company's equipment. It will also soon have a team based in Ukraine to "be closer to Ukrainian forces and to support them even better," he shared. Many companies work closely with soldiers to aid development. A Ukrainian drone operator previously told BI that he texts and FaceTimes with drone makers about their products to encourage a better iterative design and development process. Robots of the future Ground robots are particularly useful on the battlefield because they can be used to move a lot more weight than the flying drones and often more than humans can, fire from positions that are not safe for soldiers to fight from, and travel closer to Russian positions than any human fighter can safely. Väärsi said he sees the robots' role "as a first line of defense or offense," keeping troops safer. That benefits Ukraine, which doesn't have manpower to spare. "You don't move your troops in front, but you move your unmanned systems," he said. Väärsi noted Ukraine, which has a rapidly growing defense industry, has also developed a "very capable" ground robots industry. It's a technology the West and others as well are looking at more and more. Germany's ARX Robotics opened Europe's largest production facility for ground military robots this year, and companies across the continent are making new models. Milrem is playing a leading role, heading a consortium developing unmanned ground systems that received $56 million in funding from the European Defense Fund. Its robots are capable platforms that Russian researchers actually put a bounty on, encouraging soldiers to try to steal one to advance Russia's work in this space. The company's other products include larger combat vehicles, like HAVOC, which has a payload capacity of 5 tons. It also has an AI-enabled intelligent functions kit, which lets the vehicles move autonomously. It says that its products are part of robotics programs or in service in 19 countries, including the US, UK, and Germany. Ground robots are one of many things Ukraine's international partners are watching closely as they look into what sort of tactics, weaponry, and so on they should adopt. Milrem collaborates with companies that are in Ukraine, and Väärsi encouraged other foreign defense companies to do the same. "What I consider very important is that in Europe we need to learn and very seriously learn what is ongoing in Ukraine: what works, what doesn't work, what mindsets need to be shifted to be better equipped if — hopefully that never happens — but if Russia decides to expand their activities in the warfare."
Business Insider
an hour ago
- Business Insider
EU and Italy announce major debt-relief deal for Africa
Italy is working with the European Union on a debt-relief plan for African countries, as part of its broader push to foster development on the continent and address the root causes of irregular migration. " The entire 10-year operation will allow us to convert some 235 million euros ($270.67 million) of debt into development projects to be implemented locally," Italian Prime Minister Giorgia Meloni, said. In addition to the EU-led efforts, Italy is advancing its strategic framework, the Mattei Plan for Africa, which aims to accelerate growth in agriculture, energy, and infrastructure across African nations, according to Reuters. The European Union's involvement complements these efforts through its Global Gateway strategy, launched in 2021 to foster sustainable, high-standard investment as an alternative to China's Belt and Road Initiative. One of the flagship projects under this collaboration is funding for a new transport corridor connecting Angola's Lobito port with Zambia and the Democratic Republic of the Congo, a crucial mineral export route. "Investing in infrastructure is not just building railways, bridges and dams. It is also investing in training for local workers because that builds capacity and that is how transfer of expertise happens. And this results in positive spillovers all across the local economies of Africa. There is no better example than our work on the Lobito corridor," President of the European Commission, Ursula von der Leyen said. Meloni also stressed the urgency of addressing Africa's growing debt burden, warning it could 'undermine all other efforts' toward inclusive and sustainable development if left unaddressed. She revealed that a new initiative is being developed to reduce the debt load of low- and middle-income African countries by up to 50%. While she did not provide specific details, she emphasized that addressing debt was central to Italy's broader strategy for fostering long-term growth and stability in Africa.
Business Insider
an hour ago
- Business Insider
South Africa leads Africa in the latest global press freedom ranking
Only three African countries rank in the top 30 globally, while economic pressure, political control, and insecurity undermine press freedom across the continent. The 2025 World Press Freedom Index ranks South Africa 27th, marking it as the top African nation for press freedom. Namibia and Cape Verde also feature in the top 30 globally, showcasing their commitment to press freedom standards. The report highlights the interplay between economic and political instability and diminished media freedom across the continent. In the newly released 2025 World Press Freedom Index by Reporters Without Borders (RSF), South Africa has been ranked as the most press-friendly country in Africa, placing 27th out of 180 countries globally, a notable jump of 11 positions from its ranking last year. The country retains its position in the 'satisfactory' category, lauded for its reliable legal protections, pluralistic media landscape, and relative independence from government and corporate interference. Namibia (28th) and Cape Verde (30th) also rank in the same category, joining a small group of African countries that uphold press freedom standards alongside European and Asian counterparts. However, the continental trend remains concerning, with most African nations falling into the "difficult" or "very serious" press freedom zones and several experiencing record declines in media safety, legal protection, and financial sustainability. What the World Press Freedom Index Measures The World Press Freedom Index evaluates media freedom in 180 countries and territories using five key indicators: Political context, Legal framework; Economic context; Sociocultural context and Safety of journalists Score Range Zone African Countries Meaning [85 - 100 points] Good Journalism is fully protected; few or no constraints. [70 - 85 points] Satisfactory South Africa (27), Namibia (28), Cape Verde (30) Media is mostly free, but vulnerable to institutional or commercial pressure [55 - 70 points] Problematic Ghana (49), Mauritius (50), Senegal (74), Seychelles (59), Botswana (65), Malawi (72), Gabon (41) Structural issues and pressure from political or economic actors exist. [40 - 55 points] Difficult Nigeria (122), Tunisia (129), Cameroon (131), DR Congo (133), Somalia (136), Libya (137), Kenya (117), Benin (92), Togo (121), Guinea (103), Burkina Faso (105), Mali (119), Uganda (143), Burundi (125) Press freedom is significantly constrained; journalists often self-censor [0 - 40 points] Very Serious Rwanda (146), Ethiopia (145), Egypt (170), Eritrea (180 Journalism is dangerous or impossible; extreme censorship and violence occur RSF's findings highlight a concerning trajectory between economic elites' influence over media and editorial self-censorship. In many African countries, media outlets rely heavily on advertising revenue from state actors or politically aligned corporations, compromising their independence. Although some African nations demonstrate stability and openness, the media advocacy agency warns that the economic and political climate in much of Africa is becoming increasingly hostile to journalism. Despite challenges, RSF identifies South Africa, Namibia, and Cape Verde as examples of how legal protections, institutional accountability, and civic engagement can safeguard press freedom.
