By Giulio Piovaccari

MILAN (Reuters). Luca Napolitano, the boss of Lancia in Italy said that Lancia would focus on profitability rather than volume to ensure a stable home for 14 brands under 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 (expected in 2028), both both completely electric.

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

He explained that Lancia was included in the Stellantis pool, alongside Alfa Romeo DS and DS. It needed to maintain this high-end market path.

Napolitano explained that while we still need to do work, it is important to focus on a benchmark… for us Mercedes. While I don’t necessarily mean that we will fight Mercedes, that would not be wise, it is one example of what we consider.”

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.

He said that the initial goal was to have 25-30% of sales outside Europe, and then we will aim to be able to sell 50-50 percent. We will be able to benefit from our aggressive electrification strategy as well as the focus we have on European market segments that are extremely strong, thanks in part to our focused attention.

“JUST THREE Clicks”

Napolitano stated that Lancia was the Stellantis brand with the greatest share of recycled material.

He stated, “We’d like to see cars built with recycled materials.”

Napolitano stated that Lancia’s 10 year plan doesn’t include returning to motor racing and expansion outside Europe. Instead, it will focus on its priorities and credibility in the premium segment.

“However, we will be bringing (Lancia models equipped with right-hand drive) to Australia, South Africa, and Japan in the next year, provided things are going well.” He said.

Lancia’s European expansion strategy will be built on the presence of a small number of dealers in large urban areas. This allows it to reduce costs and increase 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 explained that his goal was to “make it possible for you to buy a vehicle with only three clicks”.