Stellantis Considers Selling Free2move Car-Sharing Business
Stellantis NV is reportedly exploring the potential sale of its Free2move car-sharing business. This move comes as Chief Executive Officer Antonio Filosa seeks to restructure the automaker and focus on core markets. The decision is preliminary, and no deal is guaranteed, but it reflects a broader review of Stellantis's assets and strategy.
Strategic Shift Under Antonio Filosa
Antonio Filosa, who took over as CEO in May, is under pressure to improve Stellantis's performance, especially in the US and Europe. A key part of his strategy involves exiting unprofitable ventures and concentrating investments on core brands and regions. This includes a renewed focus on the United States, a significant profit driver for the group. A new business plan is expected to be presented to investors in the first quarter of next year.
This possible sale of Free2move indicates a broader review of Stellantis's portfolio and its desire to concentrate resources on more lucrative ventures. The company has also hired McKinsey & Co. for strategic advice on the Maserati and Alfa Romeo brands, although the company has stated that Maserati is not for sale.
Free2move's History and Ambitions
Free2move was initially launched in September 2016 by France's PSA Group, which later merged with Italy's Fiat Chrysler Automobiles (FCA) to create Stellantis. The car-sharing service operates in cities such as Paris, Madrid, Rome, and Amsterdam, as well as Washington, D.C. Under former CEO Carlos Tavares, Free2move aimed for global expansion, with plans to acquire Share Now, the car-sharing venture jointly owned by BMW AG and Mercedes-Benz Group AG. The ambitious goals included reaching 15 million active users and generating €2.8 billion in net revenues.
A Change in Direction
Since Carlos Tavares's departure, Stellantis has adjusted its strategy, scaling back electric vehicle ambitions and halting investments in a hydrogen joint venture with Michelin and Forvia SE. The potential sale of Free2move aligns with this new direction, as the company aims to prioritize higher-profit activities and reduce exposure in areas deemed less strategic.
The potential sale of Free2move reflects the challenges of scaling mobility services amid Stellantis’ portfolio shift. This pivot could allow Stellantis to allocate resources more efficiently and concentrate on core operations.
