But yet, the ONLY reason Stellantis has no vehicles in those "commodity" segments is because they didn't properly invest in them in the past.@Zagnut27
Fca is awesome at commoditized cars via a commoditized brand.....in Brazil/latam. Because they have the scale economies, the cost structure, the subsidies from governments, etc. They more than earn their cost of capital over several business cycles in that part of the world.
However the same has NOT been true in europe nor in the usa. It is NOT about the willingness to invest over long stretches of time. It is (a) the paucity of time (b) and elevated cost structure and (c) in many cases severe deficits of scale economies.
I.e., cannot earn cost of capital over a full business cycle.
Ie., do not have luxury of longterm, since it would'v been dead by then or....merged. Contrary to the moralizing on allpar daimler occupation or not: chrysler corp was necessarily prone to bankruptcy (ie not earning cost of capital over full market cycle , running out of time and money). As was gm. As is ford. As was fiat group before marchionne in 2004. As was PSA before french govt bailout and one by a chinese state firm 'investor' just a few years ago, etc.
Plus the whole "commodity" idea is nothing more than an excuse. Even in those markets, buyers are often very brand loyal - especially to Toyota who earned it and didn't have a CEO denigrating the people who designed and built the cars, denigrating the product, and even the people that wanted to buy them (though that may have been someone else in the corporate structure). The excuse of "low margins" only is valid in a static analysis. It ignores the goodwill lost and the abandoned future purchases coming from brand loyalty squandered.
The problem IS long term. The thinking was short term. The former FCA took a not-so-great situation (DCX and Cerberus small cars) and made it worse.
By failing to exist in the "commodity" segments, how many life long customers are lost to Toyota and others? The myth is they'll go to Toyota for the Corolla then come back to FCA (now Stellantis) for the pickup truck, minivan, or SUV. But they often don't They're gone - driving around in a Sienna, Tacoma/Tundra, or a 4Runner/Sequoia.
It reminds me of the old saying "If you don't have time to do it right, when will you have time to do it over?"