Yahoo Finance Stellantis May Kill Brands Struggling to Turn a Profit, CEO Says
Stellantis, which includes brands such as Dodge, Fiat, Jeep, Maserati, and Ram, may become more aggressive about axing ones that don't turn a profit.
Stellantis CEO Carlos Tavares said the company is willing to kill off struggling car brands, per a report by Reuters.
Tavares told reporters about the potential action following weak sales results in the first half of the year.
It's nothing personal, it's just business. At least that seems to be the new stance of Stellantis CEO Carlos Tavares. He recently said that the company is willing to kill off brands that struggle to turn a profit, according to a report by Reuters.
The news follows a financial report for the first half of 2024 that showed worse-than-expected results. Outside of Maserati, which recorded first-half losses in the eight-figure range, Stellantis doesn't report figures for individual brands.
On the Chopping Block
"The company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues," said Tavares. "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money."
The statement marks a position change for the Stellantis boss, who has stood behind the group's individual brands since their 2021 merger. He told reporters he would be working with his team in the United States throughout the summer months to improve sales performance and reduce dealer inventory. Part of that work includes launching 20 new models globally this year, which Stellantis hopes will aid sales.
The focus is on sales in North America, which has performed below expectations. "We consider that the job is done in Europe," said Tavares. "The job is not done in the U.S. and we are now going to take care of that work."
That could spell trouble for low-volume brands such as Maserati or Fiat, both of which fall under the Stellantis umbrella. As of 2024, the only model Fiat sells on our shores is the recently revamped 500e. Maserati, on the other hand, maintains a full lineup of internal-combustion cars and SUVs and has multiple EVs on the way.
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