Stellantis asks McKinsey to help navigate tariffs for Alfa Romeo and Maserati

Automotive giant Stellantis has brought in McKinsey & Company to help the car maker deal with the dual threat of US tariffs and underperformance of key brands within its portfolio. Italian brands Maserati and Alfa Romeo are the main targets of the consulting engagement.

Reports in several media have confirmed that Stellantis chair John Elkmann has tapped McKinsey & Company amidst panic surrounding US tariffs. Alfa Romeo and Maserati – brands owned by Stellantis that build their vehicles in Europe – are especially vulnerable to tariffs on the European Union.

Earlier this month, US President Donald Trump announced a 20% tariff on all goods from the EU. But in a bid to protect American manufacturing, a 25% tariff was levied on all foreign-made vehicles. Though Trump has since put a 90-day pause on all tariffs, it does not include the tariffs on vehicles.

So that means 25% tariffs on European cars, effective immediately: It is a nightmare scenario for higher-end Stellantis brands that make their cars in Europe, like Maserati, which sells 40% of its vehicles in the US market, and Alfa Romero, which generates 14% of its sales in the United States.

Stellantis is a multinational automotive company with around 14 car brands from the US and Europe in its portfolio, including many Italian brands like Alfa Romeo and Bugati. The company – which is the result of the mega merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group – is headquartered in the Netherlands and has manufacturing plants in countries around the world.

While it is not clear exactly how McKinsey & Company will be working to help Stellantis, reports suggest the consultants will help explore the impact of the 25% tariffs on the revenue and supply chains of Maserati and Alfa Romeo. McKinsey will also carry out an analysis of potential mitigation actions, such as partnerships, potentially with Asian automakers.

Adding to the issues at the two iconic brands, Maserati recently disclosed that it faced a loss of €260 million last year, after suffering a devastating 57% decrease in sales. The company then decided to shift gears and focus on high-end customization, hoping to attract more high-income buyers.

Things have not been as bad for Alfa Romeo, though the company did also have a rough 2024 and scrapped plans for an electric vehicle offering due to sluggish sales.