- Stellantis' CEO said he'll shut down brands that aren't performing
- In 2021 Stellantis committed to 10-year investments for each of its brands
- Stellantis' net profits for the first half of 2024 were down 48% year-over-year
Stellantis' CEO Carlos Tavares warned that some of its brands could be dropped if they continue to underperform, after the automaker on Thursday reported a 48% drop in profits for the first half of 2024.
Stellantis, which was formed in 2021 following the merger of Fiat Chrysler Automobiles and France's PSA Group, has 14 brands in its portfolio, including Chrysler, Dodge, Jeep, and Ram, as well as premium European brands Alfa Romeo and Maserati. It also counts China's Leapmotor as a 15th brand in its portfolio, as Stellantis and Leapmotor have established a joint venture that will see Stellantis build and market some Leapmotor electric vehicles outside of China.
"If they don't make money, we'll shut them down," Carlos Tavares told reporters, including Reuters. "We cannot afford to have brands that do not make money."
Tavares as recently as 2021 said Stellantis is committed to a 10-year investment for each of its brands.
Citing analysts, Reuters also reported on Thursday that Maserati may be a target for sale, while regionally limited brands like Lancia and DS could be dropped due to their niche status.
Stellantis reported net profits of 5.6 billion euros (approximately $6 billion) in the first six months of the year, down 48% compared with 11 billion euros ($12 billion) in the same period last year. Revenues in the period dropped 14% to 85 billion euros ($92 billion).
Tavares said declining performance in the U.S. caused by high inventories and declining market share was the main cause for the slump in profits, and that turning the ship around is now his main task.
"We consider that the job is done in Europe," Tavares told reporters, referring to the cutting of inventory levels. "The job is not done in the U.S. and we are now going to take care of that work."
