Stellantis CEO Carlos Tavares plans to scrap brands that aren’t profitable.
Last week Stellantis reported its earnings results for the first half (H1) of 2024. The automaker reported sales of EUR 84,504 million ($91 million), down from EUR 98,063 in the same period last year. Stellantis’ net income for H1 was EUR 5,624 million ($6 million) well below the EUR 10,923 million ($11 million) it reported a year ago.
Stellantis is taking steps to recover after its H1 2024 reports. It plans to fix weak margins and high inventory in the United States. Part of its plans seem to include scrapping underperforming brands.
“If they don’t make money, we’ll shut them down. “We cannot afford to have brands that do not make money,” said Tavares.
Stellantis has 14 automotive brands under its belt, including Chrysler, Fiat, Maserati, Jeep, Peugeot, Ram, Dodge, DS, Lancia, Opel, Abarth, Alfa Romeo, Citroën, and Vauxhall. It amalgamation of iconic auto brands from a merger between Italian-America automaker Fiat Chrysler and France’s PSA.
Tavares noted that he would be working hard throughout the summer with the Stellantis team in the United States. He would be figured out how to improve the performance of US operations and cut inventory.
“We consider that the job is done in Europe. The job is not done in the US and we are now going to take care of that work,” Tavares said.
In May 2024, Stellantis reported significant growth in the European electrified market in the first four months of the year. It claimed to lead the transition to electric vehicles in key European countries.
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