2024 has been a difficult year for Stellantis’ top-tier luxury brand despite undergoing a deep image renewal with a new product line to match.
A while back I wrote about Maserati’s renovated marketing communication on the eve of the release of the MC20 and the start of its electrification journey. The MC20 was an extremely important vehicle for the brand as it not only recalled one of its most iconic modern models the MC12, but it also marked its return to the research of that somewhat lost exclusivity.
As for electrification, the first step into this new world was the introduction of a mild-hybrid version of the Ghibli that by that time was already 8 years old, even with minor upgrades throughout the years.
Maserati in Numbers
The previous look at Maserati showed how sales kept decreasing sharply after the 2017 peak driven by the introduction of the successful SUV Levante. The period for the brand was unfortunately marked by mismanagement with a strategy too focused on volumes rather than exclusivity, quality issues, and an ageing lineup with technology that could not keep up with the direct competition of German brands.
A decisive change of direction was necessary then, and it came in 2020. To the initial steps just mentioned and detailed in the article here ‘Maserati strategy: back to the origins to look at the future’ followed the release of convincing and competitive all-new models. The Grecale SUV, the GranTurismo and GranCabrio GT (Coupé and Convertible), with each model coming in two trim levels, Modena and the sporty Trofeo, but all three have also been followed by the first full-electric versions called Folgore. Finally, the convertible MC20 Cielo was also added to the new lineup.
These models brought, as expected, elegant Italian styling with attention to detail, and most of all, updated technology with the new Maserati Intelligent Assistant (MIA) based on Android Automotive as is Stellantis’ Uconnect.
Expectations were high for the new update lineup that should have brought Maserati back in competition against the German brands leading the premium and luxury segments. However, after a recovery (+42%) from the slump of 2019, worsened in 2020 by the pandemic, sales have remained mostly stable with a promising +14% in 2023, but things got worse in the past year.
Maserati Yearly Sales (2015-2024)
*2024 data is a projections for H2 based on H1 sales report
Deliveries in the first half of 2024 reached just 6,500 units equalling a -57% compared to the same period in 2023, and the trend is expected to have continued through the year bringing the overall sales to a total of around 15,000 units for the full year.
Maserati Communications and Media
The report from Stellantis quotes as key reasons for this slowdown the discontinuation of three V8-based models whose production was stopped in rapid succession between 2023 and 2024. The Levante, Ghibli, and Quattroporte. The first two were followed by end-of-production limited editions called Ultima, programmed for 103 units each and featuring reviewed components and performance, with a significantly higher price to match (around £160,000 for both in the UK or $190,000 in the US).
What is even more worrying though, is that the second reason quoted in the report is the low sales of the new SUV Grecale. Considering a global automotive market where the different sources quote the percentage of SUVs sold in developed areas between 49 and 54% of the total, and a world in which Porsche’s best-seller over the past 20+ years has always been an SUV by far, the new mid-size Grecale should have been Maserati’s heavy seller and make up for the loss of the other models if not more.
Following the news of this drastic slowdown in the first 6 months of the year, the now-former CEO Carlos Tavares in an interview stated:
“With Maserati, we have the right cars and we have the right technologies. We can offer thermal or 100% electric luxury sports cars. If sales are sluggish right now, it is a matter of marketing. We have also improved a lot on the quality front, but now we need to work on marketing. We lack prospects and leads, we need to reach potential customers and deliver the right message for the right positioning.”
This explanation however left many industry observers confused, to say the least.
What went wrong?
First of all, the difficulties for Maserati have been exacerbated by continuous production stops and reductions in the different production plants that began in early 2024 and peaked at a -75% production rate in Turin-based Mirafiori factory later the same year. The low demand that is impacting the brand production plans, especially for the full-electric models (and not just the ones under the Maserati brand for Stellantis) is the same that a while before forced the closure of the Grugliasco factory.
Along with the Mirafiori situation, the other two plants in Modena and Cassino, producing MC20 and Grecale respectively would have seen a production decrease of 79 and 58% (Italpassion.fr). The overall reduction would be around 64% with production that has dropped below 10,000 units from the almost 30,000 of the previous year.
At launch, most of the media and experts expressed positive opinions of the new Maserati models, MC20, Grecale, GranTurismo, and GranCabrio.
The quality improvements in construction and materials as mentioned by former CEO Tavares have definitely been noticed and appreciated, as are the new updated technology, and above all the performance and dynamics able to rival with Maserati’s most fierce competitors if not surpass them.
So where does the real problem lie? Well, two factors that likely held back sales are pricing first, and secondly, but probably even more important in this segment, depreciation coming as a consequence.
The problem with high prices has been quoted by most media outlets or expert testers when comparing new Maserati models with their direct competitors.
Below are some examples of the Grecale and Granturismo Modena and Trofeo trim levels against competitors in the market right now with prices (for the UK) and power figures. While not exhaustive as a comparison, as there are many more factors involved in a luxury vehicle’s valuation, the table along with the following considerations can be helpful to draw a picture of Maserati’s current positioning.
Maserati Grecale SUV and Granturismo (Modena and Trofe trims) competition by Price (£) and Power (HP)
On the SUV side, the top-trim Trofeo leads in terms of power but at a significantly higher cost than its competitors. It must be also considered that in line with the rest of the automotive luxury industry, Maserati too offers a long list of options and additional packages that can easily drive the price of these cars up by £30,000-50,000 bringing the Grecale Trofeo potentially to over £150,000.
Similarly, on the GT side, the Granturismo Trofeo ties in price the absolute top of the luxury performance market with Porsche’s offering being even lower, McLaren and Aston Martin on the same level but offering significantly more power, and even entry-level Ferrari is not that far ahead.
What must be taken into account here is the also the brand value. As proven multiple times, and even reported in various previous articles, the brand is the most important characteristic considered by buyers when approaching a luxury automaker. And as of now, considered the history, and status all these luxury competitors bring significantly higher brand equity, which in turn translates into lower depreciation and leads straight onto the next and most important point.
As reviewed with various examples in Luxury Automotive Resale Value and Depreciation: How and Why, depreciation is one of the most important factors in the luxury automotive segment and one that when achieved can constitute a significant driver for increased sales. While none of the listed brands is immune to it, especially in these times of uncertainty, unfortunately for Maserati, an evident example of severe depreciation that might drive customers away is its top-of-the-line MC20.
Starting at around £220,000, which once options are added can easily go close to £300,000, the mid-engine supercar from Maserati goes straight into competition with the best of the previously mentioned McLaren, Aston Martin, Ferrari or even Lamborghini brands. However, a quick look at the pre-owned market shows that models with extremely low mileage from 2-3 years ago sell between £140,000 and £149,000, which assuming a (conservative) £250,000 price at sale after options, would mean a 40-44% depreciation in such a short amount of time.
Similar depreciation rates are observable for the Grecale SUV as well, and slightly better for the Granturismo (between 25% and 35%) even though it must be remembered that the latter is newer so currently pre-owned samples on sale are all from 2024.
The solution to this situation is anything but easy. On the one hand, readjusting the models’ positioning could devalue the brand or the perceived luxury that Maserati is trying to restore and has partially regained with this new generation. On the other hand, adopting a similar strategy to that used in the 2010s, with discount deals on leases and other solutions of the same sort has already proven unsuccessful and in the worst cases even damaging to the brand reputation. One potential, yet risky solution, taking into account the already severe production delays, and factories’ closures, could be to gradually adopt the ‘luxury business model’ and artificially limit sales like Ferrari has always successfully done and others are trying to which could, in time, positively affect the depreciation factor.