Carlos Tavares, CEO of Stellantis, has admitted that discontinuing unprofitable brands is part of the automotive conglomerate’s plans, as its profits have dropped by nearly half in 2024.
+ Honda Scoopy launches special edition Hello Kitty to celebrate the character’s 50th anniversary
+ Video: Turkey Demonstrates Launch of New BAYRAKTAR Glide Bomb
Citroën, Fiat, Opel, Vauxhall, Peugeot, Abarth, Ram, Dodge, Chrysler, Jeep, Lancia, DS Automobiles, Alfa Romeo, and Maserati are the brands operating under the same roof. This merger began in early 2021 when the PSA Group merged with Fiat Chrysler Automobiles.
However, according to Tavares, this lineup could be simplified in the future as Stellantis plans to abandon unprofitable brands. “If they don’t make money, we will shut them down. We cannot afford to have brands that don’t make money,” Tavares said, according to Reuters.
Although he did not mention any specific brands, experts suggest that some are at greater risk than others. To Reuters, they said Maserati might end up being sold, while Lancia and DS Automobiles could be officially discontinued.
So far, this is all speculation. But Stellantis might take such measures as an emergency response after reporting a nearly 50% (48%) drop in its profits in 2024 due to weak sales of the group’s brands in the U.S.
“The company’s performance in the first half of 2024 fell below our expectations, reflecting both a difficult environment in the industry and our operational issues,” Carlos Tavares admitted during the presentation of the semi-annual results.
This content was created with the help of AI
