Between Jaguar Land Rover suspending shipments to America, Ineos and Ferrari hiking prices, and major manufacturers being forced into holding patterns, the White House’s auto tariffs have thrown the whole industry for a loop. The boardrooms of every major automaker are now war rooms, and while this is a stressful time for major brands like Toyota, small ones like Maserati are suffering even harder.
To get Maserati through this tumultuous time, Stellantis is hiring global consulting firm McKinsey, a company known for hiring recent graduates with an overabundance of confidence to simultaneously make questionable suggestions of improvements and take the blame when things don’t work out. As Bloomberg reports:
Stellantis Chairman John Elkann has asked the consultancy to assess options for the brands including partnering with other companies to access new technology, sources said.
While some Asian companies expressed interest, the considerations are at an early stage, the people said. Longer-term scenarios include spinning off Maserati, the sources said.
Tariffs are just the latest factor in what feels like a decade-plus spiral for Maserati. Hop in the hot tub time machine, let’s see where things have gone.
Back in the early 2000s, Maserati wasn’t a subsidiary of Fiat, but instead a subsidiary of Ferrari. Keep this in mind, because not only was it a heavy influence on the product of the time, it also played a key role in Maserati’s comeback. See, Maserati’s main product in America during the 1980s was the Biturbo – a cool car, but one with a terrible reputation. Even the 1986 press car suffered serious drivability issues during Car And Driver testing, with the magazine writing, “When cold, it hesitates, bucks, and even stalls. Nothing is quite as embarrassing as stalling a Maserati at a stoplight, especially one with an automatic transmission.” After a rough decade or so, Maserati pulled its product line from America, not to return until 2002.
However, when Maserati did return, its products only shared a badge with the ones Americans remembered. The European-market 3200 GT evolved into the Coupé and Spyder, now sporting a naturally aspirated Ferrari-built V8. However, the big move would be the first car developed entirely under Ferrari ownership, the fifth-generation Quattroporte.
This Pininfarina-styled sedan launched with all the highs and lows of a brand under Ferrari ownership at the time. We’re talking about a thunderous 4.2-liter Ferrari-built V8, a front-mid-engined chassis with double wishbones on both axles designed to do things no other big sedan could, and a hideously unreliable single-clutch automated transmission that offered all the refinement of My First Manual Transmission Lesson with the longevity of a dragonfly. However, it still drove like a car developed under Ferrari’s watchful eye, and once Maserati put a regular automatic transmission in it, the Quattroporte V would become sensational. What’s more, the first GranTurismo was a cut-down version of this same platform, just with a ZF 6HP conventional automatic from the start, giving Maserati exactly the sort of lineup a boutique automaker needed in the aughts.
The success of Maserati in the 2000s came partly because it was a value brand. That might sound strange considering the cars were more expensive than similar Mercedes-Benzes and BMWs, but they were substantially cheaper than Ferraris. Getting a chunk of that DNA for a whole lot less cash had appeal, and it seemed to work right up until Maserati was ripped from Ferrari’s arms, reorganized under the Fiat umbrella, and had to engineer its own cars again. While the sixth-generation Quattroporte was the first new model to be developed solely under Fiat, rather than Ferrari, ownership, the 2014 Ghibli is perhaps most emblematic of this stumble.
It starts with a new architecture dubbed M159 that, while capable, served up limited joy. The steering wasn’t great, a hydraulic setup that was unusually aloof and light on feel. At the same time, the naturally aspirated V8 made way for a three-liter biturbo V6 that was robust on the boil but could easily be caught off-boost thanks to the wide ratio spread of the ZF eight-speed automatic transmission.
Despite smelling expensive, some interior parts of the Ghibli felt weirdly cheap. Would customers notice that major touch points, including the start-stop button and entire infotainment system, were essentially shared with Chrysler rental cars? Maserati banked on “no,” but guess what? The press and some customers certainly did. It all added up to a car that was more expensive than a Mercedes-Benz E-Class while being a less resolved product, and it wasn’t great enough to drive for customers to overlook its limitations.
Flash forward nearly a decade, and after the Ghibli and sixth-generation Quattroporte didn’t quite live up to expectations, what does Maserati do? Instead of lowering prices, it allegedly stole Alfa Romeo’s homework. The Grecale crossover and new GranTurismo coupe are both evolutions of the Giorgio platform underneath the Alfa Romeo Giulia, which is a $42,000 car. At the same time, the MC20 is allegedly a variation on what was supposed to be the successor to Alfa Romeo’s 4C. Seeing how the 33 Stradale supercar is essentially a rebodied MC20 lends some credence to that insider theory.
At the same time, pricing has gone through the roof. The new GranTurismo starts at a whopping $158,000, and nears the $200,000 mark for the fast trim levels. If you want a Grecale compact crossover with a V6 engine, you’re looking at a price tag of $106,900, and the electric Grecale is $109,000. Now, instead of getting Ferrari DNA for nearly Mercedes-Benz money, you’re getting Alfa Romeo DNA for Porsche money. No wonder global sales aren’t living up to expectations. So, Mr. Elkann, Chairperson of Stellantis, if you want a few ideas on how to fix Maserati without having to hire McKinsey, here are some that are totally and completely free.
- Focus on value because the Maserati name isn’t enough to pull a huge premium. The GranTurismo cannot be 50 percent more expensive than the excellent Lexus LC 500. More powerful Grecales can’t be more expensive than equivalent Porsche Macans. They’re Porsche, Maserati isn’t. Sacrificing short-term margins for long-term volume is one of the few ways you can build up Maserati in this current climate without substantial R&D investment. If that means eating the tariffs in an important luxury market, so be it.
- The Levante needs to be put out to pasture already. It doesn’t matter that the next one won’t be ready for a few years, the current one is the last remaining artifact of a previous generation of products that didn’t live up to expectations. Early examples have depreciated heavily to the point where new ones just don’t have the appeal or showroom presence necessary for a flagship brand.
- Leverage heritage. Maserati has a legendary racing history with two Formula One driver’s championships under its belt, and a general history of building cars that stimulate the senses. We’re talking about a 110-year-old institution here. Merely mentioning this in copy isn’t enough, Maserati needs to show people its history rather than just tell them about it.
With the right sort of positioning, Maserati can be moderately successful, but it’s clear that the strategies employed over the past decade or so haven’t worked. It’s a long road back to the highs of the late aughts, and it won’t be easy, but product and price will always lead.
Top graphic image: Maserati
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No.
Maserati should be about maximum sex appeal. Glistering cleavage in black dress, a victoria’s secret model with look that promises steamy action worth of heart attack. Or similar depending on your prefence of classy hotness.
So drop anything remotely track oriented, focus on classically pretty bodies with maximum legally allowed drama under the bonnet. And especially shy away from spoilers and such. There’s already tons on marques doing the sporty bit, and pretty much nobody catering the cleavage sector. Even Aston is getting distracted.
Maserati should have learned from Genesis and be the cheaper and more stylish luxury options compared to the stuffy Germans. They could have raised prices with each generation and been a serious contender. Genesis is now always in the conversation when considering a luxury car and often the smart move. Hindsight is 20/20 though.
They’re best bet now is that Ferrari picks them up for cheap when the value is rock bottom. Then Ferrari will position them for a mostly EV portfolio to meet standards while they get to focus on gas vehicles for the purists.
That would be my long game.
I mean the Fiat Chrysler merger happened under advisement of Boston Consulting Group. Ford and GM almost always have a Big 3 consulting firm involved in a number of projects.
It’s edgy to portray big 3 consultants as overconfident recent grads, but that tends to project a level of envy. The management consultants working in Detroit are often former (successful engineers) who went back to business school
Fiat screwed this up. Maserati should have been an upscale Alfa Romeo not a down scale Ferrari. Instead it ended up being an upscale Chrysler… which noone wanted. Alfa and Maserati (and Ferrari to a point) should have been joined at the hip. Think Audi & Porsche leading on to Lamborghini. But they screwed this up and ultimately lead to the brands demise. VW saved Porsche by introducing the Cayenne and the cheaper Boxster. Maserati made a super saloon that didn’t work. Fiat could have been an Italian VW, Alfa an Italian Audi and Maserati an Italian Porsche. The recipe was there, the rule book was in place and yet they squandered a golden opportunity by letting each brand go their own way with no overall cohesion and over the last 20 years & each brand has floundered.
They have one of the coolest badges. Like Ferrari, maybe they should become a fashion company, but unlike Ferrari, not also sell cars.
They are already selling all sorts of merchandise, including watches and clothing
Ah, well, there they go—they just have to stop making cars.
Sell Maserati back to Ferrari for a bargain price they can’t walk away from – and let them return Maserati to the budget/mainstream Ferrari/Dino scenario.
Ferrari knows how to trade on engineering, history and racing glory – considering they’re the 224th most valuable company by market cap.
Maserati would give Ferrari the ability to access the mainstream premium market – alongside Mercedes, BMW and Audi. The added volume would enable Ferrari to reduce costs on shared systems, such as switchgear, HVAC, transmissions, infotainment, etc. Let the folks who are banned from Ferrari ownership buy Maseratis and do their stupid colors and customizations.
There’s definitely room in the market now that Jaguar is pretty much gone.
That’s the only correct answer.
If Maserati wants to survive it’s time for the company to roll out its 40s and 50s style American gangster roots.
Maserati won the Indy 500 in 1939 and 1940 in a car owned by a gangster, or an alleged gangster at least. That would be Umbrella Mike (a book by Brock Yates if you are interested). And everybody knows, “Damn it feels good to be a gangsta!” That’s one angle I’d be playing.
And there’s another angle on the same outlaw theme. Those early Quattroportes had Ferrari V8 engines with hot rod cross plane – not Italian style flat plane – crankshafts…well I still remember that rumbling sound (thanks Steve Earle and Copperhead Road). Seriously those cars cars sound incredible. I don’t know which auto journo came up with the idea that flat plane cranks were all that. Give me that lopey American V8 crankshaft with a high revving Ferrari top end any day of the week and twice on Sunday.
Finally, Maserati doesn’t use Dodge rental car switch gear. They stole it!
So if it were up to me, I’d abandon the sophisticated Italian luxury or supercar theme and go with American badass from the 40s and 50s. Maybe throw on some whitewall tires and chrome wheel well accents. Also, you get a matching zoot suit, and a nice chapeau like the “Hep Cats” wore with every purchase.
If Maserati follows my advice, adding in some social media to this effect, they’ll be all set and should charge a premium too. Their vehicles are “Veblen goods” and sales of such goods will increase when the price goes up. Just look at Ferrari.
Hey Mr. McKinsey. Call me.
Lexus and Genesis have found ways to barge into the luxury market and find success and I think Maserati can too, but it will mean a radical change in strategy:
I both understand and don’t understand why this is a problem.
After all, I drive a car that stickered for more than any Maserati of the time, while also using these exact same “rental car” systems, and they’ve never bothered me in a decade of ownership. In fact, they are pretty well regarded as such things go.
Would the press have treated Maserati better if they had engineered their own infotainment that was just as buggy as the rest of the car? I suspect not, which makes me think there was really no winning scenario here.
^This, this right here. If I hear something is from a “rental car” instead of unique to maserati that means it’ll probably just… work?
Top Gear said they were happy to see more Ford/Volvo parts bin stuff in the interiors of Aston Martins because that means that they would work properly.
There was some older video footage somewhere of high ranking BMW executives sitting in a base “rental car” Hyundai or Kia model at a car show. The BMW execs were shocked at how smooth and quiet the e-brake handle would engage in the Hyundai product, saying something like “why don’t we do this?” and the answer from someone else was “cost”.
There is a reason why Lambos got (slightly?) more reliable and user friendly when Chrysler bought them and deployed the Diablo.
The Diablo had a hand-built chassis that took weeks to make, and fuel injection (which was famously not carbs), that’s why it was better than the previous Lambos. Chrysler’s ‘contribution’ was not trying too hard to fuck it all up.
That was actually Mr Winterkorn from VW, not BMW
Ah yes, thank you. You are correct.
People buy vipers and maseratis for completely different reasons though. I doubt anyone ever purchased a viper for the infotainment or the quality of the leather. Come to think of it, I can’t really think of a reason to buy a maserati.
Your perceptions of Vipers might be stuck in the 90s.
I’m also not sure anyone bought a Maserati or not over the infotainment, but it remains a ridiculous thing for reviewers to harp on IMO.
Yeah, this is one of those things I think the press cares more about than real buyers. In many cases, it’s unlikely those people shopping high are aware of the lower end stuff, anyway, and they’d have to be consciously noticing the switchgear (if they’re not thankful just to have it at all at this point). If corporate bin switchgear works and allows a smaller volume manufacturer to spend money where it matters or even allows a model to exist at all, that’s fine by me. An alternative here would be to spec to the higher margin vehicle and make the cheaper one feel like better value for the dollar, but then again, studies probably indicate that customers aren’t aware enough or care enough that they’d be getting better switchgear (as long as they’re not egregiously bad or ugly) and they’d still risk getting hit by the press who would decry it being the same switchgear they use on their low end cars.
Welp. I guess Maserati will soon be chinese…
They should play off the success of HBO’s The Penguin which features a purple Quattroporte with gold brightwork as Penguin’s car of choice. Release special editions themed after Batman villains since Maserati buyers are likely to identify with them so well.
Companies like these are really just barnacles.
I have friends who came from both McKinsey and BCG, and what I can deduce is that it’s basically a place for people who got their MBA, but didn’t really want to leave business school, so they basically just work at these orgs to achieve that. They do work long hours, and they get paid a shitload too….however
Even though I do think they CAN provide value… but the value and market breadth is massively overstated. And yes, lots of times they are just “hatchet” people.
I’l work for 1% of the McKinsey fees, and offer the exact same outcome: massive layoffs! Hooray!
Has there after been a company who’s been more successful at not being successful then McKinsey. Their entire business model is failing upwards. It’s genius, just tell me you’re actually like super successful, and they totally ignore that outside of services as the job Grim Reaper, they’ve just repeatedly ran business plane after plane directly into the ground. Does Maserati really need McKinsey to destroy itself? I’ll do something really dumb, like turn Maserati into a luxury condo brand in the Gulf States and an AI powered social media company for NFT/crypto enthusiasts for less then half their fee!
Private equity can give them a run for their money.
Maserati is a brand that has never meant anything to me and I’m continually surprised by their existence. I still see them as the “I wanted a Ferrari but can’t afford it” brand. Hell, I didn’t even realize they stopped surviving off of Maranello’s scraps so long ago.
Overall better advice than McKinsey would give, but…
…sounds a little too much like “we lose a little on each sale but we’ll make it up in volume.”
McKinsey is who you go to when you are in serious trouble and have absolutely nowhere else to turn.
Things must be really really dire.
You forgot to add “and too cheap to hire real consultants “. Yeah, I’m biased because I worked for a competitor with higher rates but a better track record. Not that we were perfect- when we needed help we hired out to a cheap company rather than use our internal folks.
Which company has higher rates than McK? Genuine question
Alix Partners
Yup, nothing like hiring a bunch of 27-year old, freshly minted MBAs to tell the CEO what he wants to hear, after ignoring the rank-and-file employees who actually know how to fix what’s broken. Read When McKinsey Comes to Town, by Bogdanich and Forsythe for an in-depth look at these professional prostitutes.
If I had the kind of money that allowed me to take my car to the local Ferrari dealer whenever it broke, I’d probably drive a Maserati sedan most of the time. An old, Ferrari-DNA one.
Maserati has been surviving on fumes for many decades; there is no reason to keep dragging it out. In high school circa 1989, a friend made the decision to trade his six-year-old Thunderbird for a two-year-old Biturbo with less than 20k on the clock. It was a bad decision. The Maserati made it about 2 days before completely failing in multiple ways. The guys dad rebuilt cars for extra cash and even he basically told the kid to scrap it.
Maserati has no viable path forward and no heritage known for anyone outside of assisted living. There is nothing there to save. The best chance there is to save the brand is to sell the rights to a Chinese company and see what happens.
It would 100% become all electric – see also: Lotus.
I’d hate to see a nameplate associated with an amazing soundtrack and Italian soul sent that way but MAXIMUM SHAREHOLD VALUE FULL SPEED AHEAD
I don’t disagree, but the brand has failed so hard for so many decades that there isn’t anything tangible to save. They can’t build cars well, don’t have the ability to develop anything, and have no market. It isn’t even maximizing shareholder value; it is just being viable in any way, shape, or form.
Just disappearing is the other option, I imagine.
BTW, I see your name and can only think of this.
That was my past life – I’m out of the street game, now 😉
I’m just obsessed with GranTurismo’s but, like your story, am very afraid of owning one. But yeah, I guess that’s the entire problem with the brand
I know it’s not exactly the same as McKinsey but the company I’ve worked for for over a decade hired a similar consulting firm who I won’t name (but it rhymes with schmalvarez and schmarsal) a few years ago. Long story short, we’re closing our doors after 50 years in business and it’s 100% directly the result of the advice their consultant gave us.
Well crap, whatever you might feel about it, I’m sad to hear about it.
I feel like oftentimes these guys get paid to feed the egos of senior management by repeating their biases back to them with snazzier graphics and calling that a “strategy”, which leads to them just digging their original hole deeper.
This guy definitely had lots of graphics with arrows going up and to the right but not so much any details to explain how that would happen other than spouting the words “digital first” and “web 2.0” in every other sentence. The board was a bunch of luddites who had no idea that web 2.0 happened 20 years ago, that’s all it took to convince them.
Good suggestions but you’re missing the point of hiring McKinsey, which is to layoff a bunch of people and “offshore” some job functions to make the balance sheet temporarily look good and then sell the company to whoever will pay for it. Probably private equity who will take on debt and over leverage it, pay themselves a ton of $, sell it off piecemeal and then declare bankruptcy when the remaining unprofitable parts can’t pay the debt. It’s a simple formula and it’s worked for years to make a few people a lot of money. McKinsey doesn’t make things better. Better? Fuck no. They’re there to make a few people gobs of cash.
I’ve worked with several companies that hired McKinsey for exactly that, and only two of those companies are still around today – and those companies survived mostly because they were huge multinationals that were, effectively, too big to fail. A consultant even tried to recruit me to McKinsey one time, which I vigorously declined because at that point in my career I still had a soul, and six months later that same consultant asked me if my group had a job opening because he was tired of being a corporate grim reaper.
Ronald Mcdonalds not-so famous words “Pardon my McLanguage, but what the deep fried McF*ck was that?” come to mind when I see those newer maserati’s
I don’t know the last time I even saw a Maserati on the road. There is a blue one park along my walking route, but it has a pile of leaves and dust on it, so maybe it’s in the natural state of a Maserati, you know broken…
I actually see quite a few in the business park around my office. Often owned by directors who know Maserati is the brunt of many jokes, but they bought them slightly used after their depreciation fell off a cliff, enjoy the way they drive and sound, and didn’t want a BMW like the rest of the executives.
Everyone I know who owns one is very good natured about Maserati’s reputation. They’re in on the joke and playing to it, which I can appreciate.
I used to see one fairly regularly, as someone in my neighborhood daily drove a newer GranTurismo for the last few years. The V6 doesn’t sound bad, but it doesn’t sound like the older V8s either. I’m not sure if the car was on a really short lease or what, but the (former) owner now daily drives a new Supra.
The dealership chain I was shuffling cars for had the local franchise on these and there are at least 10 on the roads here… mostly being shuffled between customer homes and the service center.
Having driven dozens of them, I can’t imagine why anyone would want to own one unless they stole it.
The last two we delivered, one was a contest car (dude won it at a work drawing for hitting a sales goal, 3 year paid for lease) and one was to a 16 year old looking kid. His family was all there, they didn’t look like natives of the US based on language and how they were dressed but they had the cash to buy their sideways hat wearing kid a Maserati… for some unknown reason. Maybe they’re in a video game?
“You’re f*cked”
–Kinsey
“That will be eleventy billion dollars”
-McKinsey’s accountants
My local Maserati dealership has closed.