By Giulio Piovaccari

MILAN (Reuters – Italy’s Lancia said that it will focus on profitability rather than volume in order to keep a stable home for 14 brands of Stellantis and to try to imitate German carmaker Mercedes.

Lancia’s past was littered by world rally championships and famous cars like the Delta. In recent years, it has retreated to a single model: the Ypsilon in one market: Italy.

Analysts have considered Lancia to be one of the less strategic brands in Stellantis. This is the fourth-largest carmaker in the world and was created this year through the merger between Fiat Chrysler (France) PSA.

Stellantis CEO Carlos Tavares was presented with a 10-year strategy by Napolitano. This plan included three new models, the new Ypsilon (2024), which is both hybrid and fully electric; and a crossover (expected in 2026) and a hatchback (2028), both of which are completely electric.

In an interview, Napolitano stated that volumes are crucial but profitability is our goal.

He said that Lancia, along with Alfa Romeo, DS, was grouped within the Stellantis brand pool cooperating in premium markets, had to keep going on the high-end track.

Napolitano explained that while we still need to do work, it is important to focus on a benchmark which in our case would be Mercedes. Although I do not mean we are going to be fighting against Mercedes, this would be foolish. But that is an example for what we see.

Although DS and Alfa Romeo are both global brands, Lancia is aiming to expand to Europe. He said that initially, he was focusing on France and Germany, but then expanding to include Spain, Belgium and Austria.

“We originally target to make 25-30% our sales overseas, and to eventually reach 50-50,” said he. We will benefit from our aggressive electrification strategy as well as the focus we have on European market segments that are extremely strong, thanks to which we can be more efficient.”

It takes just three clicks to get started

Napolitano explained that Lancia wanted to be the Stellantis brand which had the largest share of recyclable materials.

He said, “We want to build cars using a substantial portion of recycled material.”

Napolitano explained that Lancia’s 10-year plan for Lancia does not involve returning to motor racing or expanding beyond Europe. It needs to be credible in its premium segment, and it must focus on priority areas.

“But, however, in the next year, if everything goes well, why don’t we try to bring (Lancia model with) right-hand driving also in Japan. South Africa and Australia? he stated.

Lancia Europe’s expansion plans will focus on a limited network of dealers. They will only be located in the most urbanized areas. This helps to lower costs and improve profitability.

Napolitano stated that the goal was to establish around 100 Lancia sales points across Europe, in approximately 60 cities. This would be shared by other Stellantis brands. Online marketing will help reduce time spent at dealers.

Napolitano stated, “My goal is to make it easy to purchase a car in just three clicks.”