Alfa Romeo And Chrysler Given 10 Years To Prove Their Worth

May. 13, 2021 2:10 PM ET by Jay Traugott Industry News / 21 Comments

Or else...

Now that the merger has been completed between FCA and PSA Groupe to create Stellantis, CEO Carlos Tavares can create a long-term plan for the long list of brands. Even before the merger, Alfa Romeo and Chrysler were struggling (not to mention the namesake Fiat brand, specifically in the US), but these are iconic automakers with significant potential and Tavares isn't about to let either collapse. At least for now. Speaking at the Financial Times' Future of the Car Summit, via Autocar, Tavares stated the following regarding both brands:

"We're giving each a chance, giving each a time window of ten years and giving funding for ten years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets and brand communications.

2017-2021 Alfa Romeo Giulia Quadrifoglio Front View Driving

2017-2021 Alfa Romeo Giulia Quadrifoglio Rear View Driving

"If they succeed, great. Each brand is given the chance to do something different and appeal to customers."

So there we have it. If neither Alfa Romeo nor Chrysler can't get their acts together by 2031 then one or both are gone. We're hopeful that won't happen as a turnaround plan for Alfa is already underway. Under the leadership of Tavares' hand-picked choice, Jean-Philippe Imparato, formerly head of Peugeot, Alfa has already made some tough yet bold decisions. The Giorgio rear-wheel-drive platform that underpins the Alfa Romeo Giulia and Stelvio will soon be retired. The "STLA Large" architecture that's in development will take its place at an undisclosed date.

This doesn't mean the Giulia and Stelvio nameplates will also be dropped, but this new platform can accommodate plug-in hybrid and pure battery-electric models. Clearly, that's crucial going forward. The status of a 4C successor still remains unknown. The Alfa Romeo Tonale small crossover SUV, due next year, should also help boost brand sales.

As for Chrysler, which has been in decline for years, its current two-model lineup must expand. It was rumored at one point that Peugeot's long-awaited return to the US could come at Chrysler's expense. Tavares put that idea to rest a few months ago. Chrysler is likely to also rely on the STLA Large platform going forward but what types of vehicles that'll it support remain a mystery.