One of the often repeated ''wonderings'' about the creation of Stellantis is what will mean to North America model line.
The answers is outside of electrics, and some cost cutting, pretty much nothing.
PSA was an European OEM with small international presence out of some boom & bust fads in China and Brazil. The addition of Opel helped PSA add some heft in Europe, firmly overtaking Renault in Europe, and now with Stellantis, Volkswagen finally have a true competitor in scale and dominance of Europe.
Outside of the stronger profile of the combination of finances, there's no impact to the North American business which been undergoing a transformation started by legendary Sergio in about 2015. Under Sergio, the North American business with 2015/2016 slashed sales to fleets (especially rental sales), overhaul dealer wholesale payment formula ,and cut unprofitable products (200 and Dart) in what turned out to be long-term declining vehicle categories.
On top those actions ,Sergio and his team at FCA went after ''Money left On The Table '' opportunities regarding Grand Cherokee, Wrangler and RAM. ''Money left On The Table '' opportunities included price, options & equipment, features , trim levels & packages ( including special editions), configurations (RAM Crew Cabs, Grand Cherokee L with 3-rows, birth of Gladiator), mix of configurations, overall mix, dealer allocations , and stimulating demand for these products as well huge investments in Capacity to build these products (Grand Cherokee, Wrangler, Gladiator RAM and family of Wagoneer ).
These actions all together have created strong Average Transaction Prices, among the highest mass marketed, which driven EBIT Profit margin (Earnings Before Interest and Taxes) higher than 10% (Sergio's target) and resulted in highest profitability for an OEM in North America. The addition of the Wagoneer family will further enhance the profitability of the North America unit.
The actions have taken place with the U.S. buyer moving away permanently from the traditional small & midsize passenger car categories which enhance the results of the actions strengthening the North American business for long-term health as the products categories focused on by the 2025/2016 direction can better handle new technologies while preserving profitability & value prospection of the models and brand DNA. Product categories like the traditional midsize passenger car category faces total extinction with ''the storm'' of new technology such as infotainment, driver aids, and Electric adds cost which in-turn changes the value prospection in such a point where there's no marketability to the category .
So to recap Sergio & his team achieve best in region profitability ,they also set the company up in North America to weather the ''storms'' of economy/social/tech. The wacky ''fantasy'' that PSA products in the A/C/D traditional segments in Europe would be modified & federalize by a cost-cutting CEO (Carlos Tavares) is peak lunacy (and base on what that same crowd
recently stated on ''that other website'' there's some that don't understand the difference between EBIT or after tax profit vs revenue which is downright funny).
Carlos Tavares is focusing on reducing build cost/cost of goods/material cost which if successful without harming the commercial appeal of the products will only lead to bigger EBIT Margins likely in the Mid-teens in North America. As focusing on margins continues, Stellantis won't invest in poor segments, and will invest in all things Electric technology.
This brings to what an PSA influenced models can realistically be in North America. One of hallmark categories of the Old Chrysler was Minivans category (after it created it). The Pacifica in the face of declining category volume with the growth in CUV's/SUV's evolved the company's position from the bottom rung ''rock bottom'' price position in category into one that's have a real price, modern and standup (vs Toyota & Honda)on merits. With the Pacifica, the company has a real profitable, enduring foothold in the Minivan category that the Old Chrysler created. However the Pacifica becomes a decade old in 2026 , and will need a redesign to continue holding its own position.
This is where the savings with PSA influence can appropriately come into effect with North America as CUSW/Compact Wide runs its course, but there's is another product besides the Pacifica........for years people been asking about a midsize truck answer to Ranger/Colorado and how the company is missing out on marketshare. But there are two key factors often over looked: Pricing and Capacity. The midsize Truck category while very strong and profitable does get a lower Average Transaction Prices than Full Size Pickup trucks outside of the Gladiator (sales performance been excellent).
You have to have the capacity to play , and with Body-on Frame capacity the growth of RAM has consumed the North America unit industrial footprint.
On the July 8th Electric Day, Stellantis will likely make series of announcements/directions about future of its capacity including in North America. To meet Margin target of Mid-teens & Emission standards, Stellantis will likely make new investments in Full Size RAM output especially enabling RAM EV output. Because of such size of the likely capacity investments any capital spent on programs that takes up Body-on Frame capacity away from Full Size RAM will be scrutinize.
Instead of a Body-on Frame Midsize Truck, a Unibody Midsize Truck that would be priced not too indifferently than the RAM DS (Classic) that would be PSA-influence while sharing components with a PSA-influence Pacifica and being built in Windsor could address the Midsize pickup market. PSA-influence RAM Unibody Midsize Truck would aided cost savings target that came with the merger, fill up unused FWD capacity that Windsor has, while not taking capacity from Full Size RAM. The key for overall market performance for PSA-influence RAM Unibody Midsize Truck will be the execution of the development of such program.
PSA-influence RAM Unibody Midsize Truck must be developed to U.S. interior space expectations, must innovate around utility which is something the company knows how to do such as the cleverness of the Gladiator, and Stow N Go. Products such as the Honda Ridgeline failed to take off in the United States because of the flawed execution in the previous mention areas of focus ( U.S. interior space, utility) as well as the design and Honda never properly targeted the size class it belonged in ( too many reviewers in the press comparing it to Full Size BOF products, Stellantis will not make such mistake and can make a superior package) .
People know to come to the RAM brand for pickups(not case for Honda brand), hence the brand has taken significant marketshare, and can market successfully the PSA-influence RAM Unibody Midsize Truck around design/functionality/utility.
Next generation Pacifica along with RAM Unibody Midsize Truck are the most realistic and most benefitable uses of PSA-influence in North America unit, which is on a hot streak of profitability generated by Sergio's leadership.
The answers is outside of electrics, and some cost cutting, pretty much nothing.
PSA was an European OEM with small international presence out of some boom & bust fads in China and Brazil. The addition of Opel helped PSA add some heft in Europe, firmly overtaking Renault in Europe, and now with Stellantis, Volkswagen finally have a true competitor in scale and dominance of Europe.
Outside of the stronger profile of the combination of finances, there's no impact to the North American business which been undergoing a transformation started by legendary Sergio in about 2015. Under Sergio, the North American business with 2015/2016 slashed sales to fleets (especially rental sales), overhaul dealer wholesale payment formula ,and cut unprofitable products (200 and Dart) in what turned out to be long-term declining vehicle categories.
On top those actions ,Sergio and his team at FCA went after ''Money left On The Table '' opportunities regarding Grand Cherokee, Wrangler and RAM. ''Money left On The Table '' opportunities included price, options & equipment, features , trim levels & packages ( including special editions), configurations (RAM Crew Cabs, Grand Cherokee L with 3-rows, birth of Gladiator), mix of configurations, overall mix, dealer allocations , and stimulating demand for these products as well huge investments in Capacity to build these products (Grand Cherokee, Wrangler, Gladiator RAM and family of Wagoneer ).
These actions all together have created strong Average Transaction Prices, among the highest mass marketed, which driven EBIT Profit margin (Earnings Before Interest and Taxes) higher than 10% (Sergio's target) and resulted in highest profitability for an OEM in North America. The addition of the Wagoneer family will further enhance the profitability of the North America unit.
The actions have taken place with the U.S. buyer moving away permanently from the traditional small & midsize passenger car categories which enhance the results of the actions strengthening the North American business for long-term health as the products categories focused on by the 2025/2016 direction can better handle new technologies while preserving profitability & value prospection of the models and brand DNA. Product categories like the traditional midsize passenger car category faces total extinction with ''the storm'' of new technology such as infotainment, driver aids, and Electric adds cost which in-turn changes the value prospection in such a point where there's no marketability to the category .
So to recap Sergio & his team achieve best in region profitability ,they also set the company up in North America to weather the ''storms'' of economy/social/tech. The wacky ''fantasy'' that PSA products in the A/C/D traditional segments in Europe would be modified & federalize by a cost-cutting CEO (Carlos Tavares) is peak lunacy (and base on what that same crowd
recently stated on ''that other website'' there's some that don't understand the difference between EBIT or after tax profit vs revenue which is downright funny).
Carlos Tavares is focusing on reducing build cost/cost of goods/material cost which if successful without harming the commercial appeal of the products will only lead to bigger EBIT Margins likely in the Mid-teens in North America. As focusing on margins continues, Stellantis won't invest in poor segments, and will invest in all things Electric technology.
This brings to what an PSA influenced models can realistically be in North America. One of hallmark categories of the Old Chrysler was Minivans category (after it created it). The Pacifica in the face of declining category volume with the growth in CUV's/SUV's evolved the company's position from the bottom rung ''rock bottom'' price position in category into one that's have a real price, modern and standup (vs Toyota & Honda)on merits. With the Pacifica, the company has a real profitable, enduring foothold in the Minivan category that the Old Chrysler created. However the Pacifica becomes a decade old in 2026 , and will need a redesign to continue holding its own position.
This is where the savings with PSA influence can appropriately come into effect with North America as CUSW/Compact Wide runs its course, but there's is another product besides the Pacifica........for years people been asking about a midsize truck answer to Ranger/Colorado and how the company is missing out on marketshare. But there are two key factors often over looked: Pricing and Capacity. The midsize Truck category while very strong and profitable does get a lower Average Transaction Prices than Full Size Pickup trucks outside of the Gladiator (sales performance been excellent).
You have to have the capacity to play , and with Body-on Frame capacity the growth of RAM has consumed the North America unit industrial footprint.
On the July 8th Electric Day, Stellantis will likely make series of announcements/directions about future of its capacity including in North America. To meet Margin target of Mid-teens & Emission standards, Stellantis will likely make new investments in Full Size RAM output especially enabling RAM EV output. Because of such size of the likely capacity investments any capital spent on programs that takes up Body-on Frame capacity away from Full Size RAM will be scrutinize.
Instead of a Body-on Frame Midsize Truck, a Unibody Midsize Truck that would be priced not too indifferently than the RAM DS (Classic) that would be PSA-influence while sharing components with a PSA-influence Pacifica and being built in Windsor could address the Midsize pickup market. PSA-influence RAM Unibody Midsize Truck would aided cost savings target that came with the merger, fill up unused FWD capacity that Windsor has, while not taking capacity from Full Size RAM. The key for overall market performance for PSA-influence RAM Unibody Midsize Truck will be the execution of the development of such program.
PSA-influence RAM Unibody Midsize Truck must be developed to U.S. interior space expectations, must innovate around utility which is something the company knows how to do such as the cleverness of the Gladiator, and Stow N Go. Products such as the Honda Ridgeline failed to take off in the United States because of the flawed execution in the previous mention areas of focus ( U.S. interior space, utility) as well as the design and Honda never properly targeted the size class it belonged in ( too many reviewers in the press comparing it to Full Size BOF products, Stellantis will not make such mistake and can make a superior package) .
People know to come to the RAM brand for pickups(not case for Honda brand), hence the brand has taken significant marketshare, and can market successfully the PSA-influence RAM Unibody Midsize Truck around design/functionality/utility.
Next generation Pacifica along with RAM Unibody Midsize Truck are the most realistic and most benefitable uses of PSA-influence in North America unit, which is on a hot streak of profitability generated by Sergio's leadership.
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