Is It the End for Alfa Romeo and Maserati?

Already weakened within Stellantis, Maserati and Alfa Romeo are now under surveillance. Tough times are ahead for the beautiful Italian brands.

The automotive group Stellantis is going through a difficult period. Its stock price has fallen by 31% in one month, including 19% over just the last five days! Under pressure due to the escalation of the trade war initiated by Donald Trump, the company has enlisted the services of McKinsey & Co for strategic advice regarding its Alfa Romeo and Maserati brands. According to sources cited by Bloomberg, Stellantis CEO John Elkann asked McKinsey to evaluate various options, including industrial partnerships to access new technologies or even a long-term potential spin-off of Maserati.

The 25% tariffs imposed by the Trump administration on automobile imports are heavily weighing on Stellantis’ prospects. Maserati, with about 35 to 40% of its customers based in the United States, and Alfa Romeo, which has no factories outside Europe, are particularly affected. These brands’ products must be imported, increasing costs and threatening profit margins. Last year, Maserati reported an adjusted operating loss of €260 million, with sales down more than half.

Is Asia at the bedside of the Italians?

Despite interest from some Asian companies, discussions about potential collaborations are still at an early stage. John Elkann remains firmly opposed to the idea of selling these brands to a Chinese competitor. Meanwhile, he plans to relocate part of Maserati’s production to underutilized factories in Italy, as part of an effort to strengthen ties with the Italian government.

The trade war initiated by Trump also complicates the situation for Stellantis overall. The group, which owns many factories in Mexico and Canada—two countries targeted by the US administration—faces rising production costs and disruptions to its supply chains. After a 12% decline in US sales in the first quarter, Stellantis is now offering significant price reductions to attempt to win back customers.

In this tense context, Maserati is betting on an increased personalization of its vehicles to attract a wealthier clientele and improve its margins. However, it remains to be seen whether these measures will be enough to stabilize Stellantis’ finances and pull Alfa Romeo and Maserati out of their difficulties.

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