Due to Stellantis' poor financial performance in the first half of 2023, CEO Carlos Tavares publicly declared at the end of July that the company would shut down unprofitable brands. This announcement has made the fate of its luxury car brand Maserati a global hot topic, with many twists and turns in the ensuing speculation.
The European and American markets immediately responded with expectations that Ferrari would take over Maserati, given the two brands' long and complicated shared history. However, Stellantis quickly denied these rumors. Recently, reports have emerged suggesting that the Italian government is considering allowing Chinese state-owned enterprise Chery to acquire Maserati, as it recognizes Chery's ambition to enter the high-end market.
Why Ferrari?
Regarding the possibility of Ferrari joining forces with Maserati, foreign media have analyzed the potential for a "triple win" scenario.
The first advantage would be restoring Maserati's status as a luxury brand. Market analysts believe that the Grecale model Maserati launched in the first half of 2023 doesn't align with its image at all, feeling more like a copy of the Alfa Romeo Stelvio, another brand under Stellantis. This misalignment is considered one of the key reasons for Maserati's plummeting sales.
The second benefit is that Stellantis would effectively lighten its load. The company saw its profits nearly halved in the first half of 2023, a dismal performance. This poor showing is why the company is considering liquidating unprofitable brands and quickly restructuring its global supply chain.
Stellantis has cut jobs in the United States, citing low manufacturing efficiency, but US dealerships are also unhappy with the large amount of unsold inventory, leading to a flood of criticism. Stellantis clearly has too much to deal with right now, and reducing its burden would provide much-needed relief.
The third advantage is a matter of compatibility. Ferrari has a proven track record of creating exclusivity for its brand, and from 1997 to 2005, both Ferrari and Maserati were under Fiat's ownership. Therefore, Ferrari would have an advantage in knowing the ins and outs of Maserati.
Additionally, with the shift toward electric vehicles (EVs), the dominance of traditional brands is being challenged. This poses a potential threat to Ferrari, but if Maserati, with its slightly lower price point, could serve as Ferrari's representative in the EV transition, it might help minimize that risk.
However, just a few days after these speculations emerged, Stellantis clarified that it has no intention of selling Maserati and no plans to merge it with other Italian luxury car groups like Ferrari.
Chery enters the fray
Recently, the Chinese market has been buzzing again with renewed speculation that Chery might acquire Maserati. This rumor first surfaced in Italian media, with reports that the Italian government is considering bringing in a Chinese company to take over a Stellantis car brand.
Chery's motivation for such an acquisition lies in its need for a more prestigious brand to move "upward" and boost its presence in the high-end market overseas. Currently, 90% of Chery's vehicles are internal combustion engine cars, with export prices ranging from CNY100,000 to CNY200,000 (US$14,170 to US$28,350).
In the first half of 2023, Chery became the top exporter among Chinese automakers, surpassing both SAIC and BYD. This success is largely due to its early efforts in overseas markets and its ability to fill the gap left by international brands exiting the Russian market due to the Russia-Ukraine war.
However, Chery's transformation to new energy vehicles has not gone smoothly. In the Chinese market, it has been overshadowed by competitors like BYD, Geely, Great Wall, and Xiaomi Auto. Since new energy vehicles are seen as the key to expanding overseas, Chery faces a potential crisis if it doesn't pivot quickly.
Therefore, by advancing into the high-end market and leveraging the advantages of Chinese manufacturing, Chery could carve out a new path for its brand positioning. However, Chery's past acquisition of the British luxury car brand Jaguar did not yield positive results; instead, it caused Jaguar's sales to decline. Jaguar is now a fully-owned subsidiary of India's Tata Motors. Whether Chery can make a comeback is something the Chinese market is watching closely.
