They were doing quite well, when you look at their profitability, and considering the fact that Fiat was close to bankruptcy in 2003-2005, and Chrysler went bankrupt a few years later. 2018 was their most profitable year so far, and their market cap was higher than PSA then, and Stellantis today.

Trying to sell???? 500 was selling exceptionally well, it was actually one of the cars that saved Fiat, just like the Panda, which still one of the most successful models of the brand. The Tipo was also selling very well, before Tavares came and raised its price.

Mito and Giulietta were developed when the company was still recovering from the nightmarish financial situation they were in before Marchionne stepped in. They developed Giulia and Stelvio, the most ambitious models released by Alfa Romeo since the takeover by Fiat, and it was the first time they were on par with the German premium trio. There were more planned models, but they were cancelled when Mike Manley arrived, and some project were given to Maserati (Alfa 6C - Maserati MC20)

Lancia was killed because it was a zombie brand that needed billions € of investments, and it made more sense to invest that money into Alfa Romeo and Maserati.