Stellantis, the automotive giant formed through the merger of Fiat Chrysler Automobiles and Groupe PSA, is considering shutting down underperforming brands in its extensive portfolio. The CEO, Carlos Tavares, has made it clear that brands that are not turning a profit may face the chopping block.
After a disappointing first half of 2024, which saw Stellantis shares drop by 10 per cent, Tavares stated, “If they don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money.” This tough stance comes as the company reported a net revenue of €85 billion ($AU141B), a 14 per cent decrease from the previous year, and a net profit of €5.6 billion ($AU9B), a 48 per cent decrease from 2023.
While specific details on individual brand performances were not disclosed, Maserati was an exception, reporting an operating loss of 82 million euros ($AU136 million) in the first half of 2024. Reports suggest that Maserati could be up for sale, and other brands like Lancia and DS marques could face elimination due to their low sales volumes compared to the group’s overall output.
This move to potentially streamline the brand portfolio is aimed at boosting profitability and ensuring the long-term viability of the company. Tavares had previously stated that each brand under Stellantis would be given a 10-year window to prove its worth, with funding allocated for core model strategies to enhance brand promise, customer engagement, and overall performance.
In light of these developments, industry observers are closely watching the fate of Stellantis brands and how the company plans to navigate through the challenging automotive landscape. With the automotive industry undergoing rapid transformations driven by technological advancements and changing consumer preferences, it is crucial for companies like Stellantis to adapt and evolve to stay competitive in the market.
As the automotive sector continues to evolve, journalists like Jordan Hickey play a vital role in keeping enthusiasts and industry insiders informed about the latest developments. With a background steeped in automotive culture and a passion for cars, journalists like Jordan provide valuable insights and analysis that help readers understand the complex dynamics at play within the industry.
By staying abreast of the latest news and trends in the automotive world, readers can gain a deeper appreciation for the challenges and opportunities facing companies like Stellantis as they navigate a rapidly changing landscape. The decisions made by industry leaders like Carlos Tavares will not only impact the future of individual brands but also shape the broader trajectory of the automotive sector as a whole.