Big change coming to Jeep, Fiat, Alfa Romeo, Citroen, Peugeot and Ram in Australia

The management of Jeep, Fiat, Alfa Romeo, Citroen, Peugeot, and Ram Trucks in Australia is about to come under one umbrella even though the multinational brands are handled by different importers.

In January this year, the European Commission approved the merger of two giant automotive groups – FCA which included Jeep, Fiat, Alfa Romeo and Ram, and PSA which included the struggling French sister brands Peugeot and Citroen and ex-General Motors German brand Opel.

Combined, the newly formed alliance – known as Stellantis – is the sixth largest automotive conglomerate in the world.

However, the company is now sorting out loose ends around the world, including Australia where three distributors handle six automotive brands.

The Australian head office for Jeep, Alfa Romeo and Fiat – which is a factory-backed subsidiary that reports directly to Detroit – will oversee local operations of the struggling Citroen and Peugeot brands (currently handled by independent distributor Inchcape, which also handles Subaru), and Ram Trucks Australia (currently handled by independent distributor Ateco, which also handles Chinese brand LDV, French brand Renault, and Italian brand Maserati).

A confidential bulletin sent to dealers was distributed by the Jeep Australia head office just days after Ateco expressed interest in taking over “struggling brands” that sold fewer than 20,000 new vehicles per annum in Australia.

Potential Ateco takeover targets in Australia – mentioned in a story published last week by Carsales.com.au – included fellow Stellantis brands Citroen, Peugeot, Jeep, Alfa Romeo and Fiat, all of which sold fewer than 20,000 cars locally last year.

The report quoted the boss of Ateco, Neville Crichton, as saying he was always “looking for opportunities” to add struggling brands to his independent distribution portfolio.

However, barely 48 hours later, a note issued by Stellantis to Australian dealers late last week said: “Effective today, the relationship with all FCA and PSA distributor partners in Australia and New Zealand will now be managed locally from the Australia-based Stellantis Group entity. We will be responsible for Stellantis’ entire business and performance in Australia and New Zealand.”

It means that while Ateco will continue to distribute Ram Trucks in Australia, and Inchcape will continue to distribute Peugeot and Citroen vehicles, representatives for those distributors will report to the Jeep head office in Melbourne rather than directly with overseas factories.

It means Jeep Australia will have complete oversight and responsibility for all Stellantis brands locally.

“This new local relationship and support shows that we are truly committed to the Australia and New Zealand markets and all of our Stellantis brands for long term growth and success,” the confidential bulletin continued.

“As a result, we are excited to announce that effective immediately, Ateco and Inchcape … will be managed by … the Australian team.”

All other aspects will remain “business as usual”, the bulletin from Stellantis said.

In the meantime, it is unlikely customers will notice any immediate changes to the dealer network for Jeep, Alfa Romeo, Fiat, Peugeot, Citroen and Ram Trucks.