4 The fate of the Fiat brand

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In the Stellantis mega group, 14 brands have been gathered under one roof since the beginning of 2021. Advantages of such mergers: High development costs can be spread across more models with different logos based on the same technology. Joint purchasing of supplier parts saves money thanks to better conditions. And finally, each brand can target a customer group so accurately that they don’t get in each other’s way and steal each other’s market share. Alongside Stellantis, the VW Group with its brands of Audi, Bentley, Cupra, Lamborghini, Seat, Skoda, Porsche, Volkswagen and VW commercial vehicles also masters this discipline of selective brand management, sometimes more, sometimes less.

However: Sometimes such a merger can also lead to the disappearance of a brand. Because it doesn’t fit into corporate structures, because it’s recruited as an undesirable competitor to other corporate brands, or because there isn’t a suitable strategy for its development. Using the example of today’s Stellantis subsidiary Fiat, we’ll take a look at four of these brands that haven’t always run smoothly during their relationship with Fiat.

It was born by Fiat and ironically buried by its current Fiat partner Peugeot: Simca was founded in 1934 to manufacture Fiats under license in France, thus saving on import taxes. Simca quickly became successful and became more independent. The 1301/1501 (picture), still developed on the basis of Fiat, was a sports sedan by French standards, a French Alfa, so to speak. In 1971, US automaker Chrysler bought the Simca brand and things turned upside down. Eventually, Peugeot took over the already terminally ill brand and changed its name to Talbot. Even the already fully developed Arizona was no longer helping Simca: it ceased to exist in 1986, and many models in the pipeline were released as Peugeots.

Founded in 1950 under the dictator Franco’s regime, Seat would help advance Spain’s industrialization as a domestic automaker. There were two partners to choose from: Fiat and, ironically, Volkswagen even back then. The contract went to Fiat, again due to Simca’s success. From 1950, Seat initially produced only slightly modified Fiat models, such as the Seat 1400, which was based on the Fiat 1400 – very successful in Spain, but little known outside the country. long time. Then the partners fell. In 1984 the first “own” Seat appeared with the Seat Ibiza (pictured). After years of collaboration with VW, Seat switched entirely to VW in 1986. Since then, the brand has also been one from outside Spain.

As an “engineer brand”, Lancia was progressive from 1906, but from the 1960s things got tougher financially – a partner was needed. BMW wanted it, but Fiat got approval in 1969. First, Lancia flourished, celebrating achievements in the sport, creating legends like the Delta Integrale (pictured) – but the success ended when Fiat had to deal with Alfa Romeo as well. Lancia had to give up motorsport and survived to death, eventually becoming obscene like the Chrysler 200 with a Lancia label under the traditional Flavia name, and that was spoiled by it. In 2017, this once proud luxury brand retreated to its main market, Italy. With PSA and FCA merging to form Stellantis in 2021, group CEO Carlos Tavares said Lancia deserves a fresh start and will invest at least ten years in the brand. From 2024, things will get serious with a new electric Ypsilon.

Founded in 1910, Alfa has celebrated massive automobile rises and insane financial downturns. As a state-owned company, Alfa Romeo has repeatedly had to yield to political demands. Introduced in 1971, Alfasud was the last straw: This great brand was finally ripe for takeover. In 1986 Fiat took over and kept the brand alive, sometimes correctly – but mostly badly with cars like the Alfa 156 (pictured). When the last Alfa customer seemed lost and no one believed it anymore, Fiat in the Stellantis group actually managed to resurrect successfully in recent years: Since the logo modernized in 2015 and the Giulia model that followed, Alfa Romeo has shined again – for example, the Stelvio, which was launched last year and with the smaller Tonale.

Source: Blick