Stellantis CEO Warns Money-Losing Brands Will Be Axed 

Stellantis CEO Carlos Tavares warned on Thursday that the carmaker will cut money-losing brands following worse-than-expected first-half results, according to numerous reports.

Tavares’ statement comes as the company moves to fix weak margins and high inventory at its U.S. operations. Stellantis was formed in 2021 from the merger of Fiat Chrysler with PSA Group. 

“If they don’t make money, we’ll shut them down,” Tavares said, per Reuters. “We cannot afford to have brands that do not make money.”

In the company’s portfolio, its 14 diverse global brands heavily overlap with one another, Road & Track noted.

Stellantis reported net profits of 5.6 billion euros, or $6 billion, in the first half, down 48% compared to its profits of 11 billion euros year-over-year, according to the Washington Post. Revenues in the period dropped 14% to 85 billion euros. Tavares said Stellantis’ results “fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues.”

Tavares did not say what brands could be axed. The company does not disclose individual results for any brand but Maserati, which posted an adjusted operating loss of 82 million euros in the first half.

The chief executive said that the company is addressing its problems, and he is optimistic that the launch of 20 new vehicles in 2024 will boost profits. Ten of those models have already started production in the first half of the year.

Tavares stated that he would promptly collaborate with his U.S. team to enhance performance and reduce inventory, reported Reuters, which pointed out that it’s been rare that an auto brand has been slashed since General Motors “ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008.” The last one to die off was Mercury in 2011, according to Road & Track.