Stellantis CEO Carlos Tavares has warned that the company will not hesitate to close the doors on underperforming brands in its portfolio should they fail to reach their targets.
Stellantis is one of the newer automotive conglomerates on the scene; it was formed in 2021 as a merger between the Italian–American Fiat Chrysler Automobiles and the French PSA Group, boasting 14 well-known brands under its umbrella.
These include:
- Abarth
- Alfa Romeo
- Chrysler
- Citroen
- Dodge
- DS Automobiles
- Fiat
- Jeep
- Lancia
- Maserati
- Opel
- Peugeot
- Ram
- Vauxhall
During an earnings call in July, Tavares hinted that Stellantis is considering axing one or more of these nameplates in the future due to persistent weak financials, Automotive News Europe reports.
“If they are not able to monetize the value that they represent, then decisions will come.”
This follows Stellantis reporting a 49% drop in net profits – from €10.9 billion (R217 billion) to €5.6 billion (R111 billion) – in the first six months of 2024.
It attributes these headwinds to a slew of discontinued models in North America, actions to manage inventories in Europe, and unfavourable foreign exchange rates in Turkey and Argentina.
The problems it faces are most severe in the North American market, which experienced the biggest slump in revenue during H1 2024 out of the five major regions Stellantis operates.
On the chopping block
Except for Maserati, Stellantis does not publish financials for individual brands, hence, it’s difficult to determine which badges are potentially on the chopping block.
In the past six months, it launched the Maserati Grecale Folgore, RAM 1500, Peugeot 3008, Lancia Ypsilon, Peugeot 2008, Citroen C3 Basalt, and Peugeot 5008.
Additionally, it introduced a variety of small, medium, and large commercial vehicles either with a Citroen, Opel, or Peugeot logo on the nose.
During the remainder of 2024, Stelltantis will introduce the Dodge Charger Daytona, Jeep Wagoneer S, RAM 1500 REV, Jeep Recon, RAM 1500 Ramcharger, Citroen C3, Alfa Romeo Junior, Opel Grandland, Opel Frontera, and Fiat Grande Panda.
The only brands not covered by these debuts are Abarth, Chrysler, DS Automobiles, and Vauxhall.
This suggests Stellantis may be taking a wait-and-see approach with these particular nameplates to determine whether they should be put to pasture or given another go.
As for Maserati, it is the only subsidiary the parent company has provided comment on, albeit no definitive statement.
Stellantis’ lone luxury brand and the only one it reveals financial performances for, Maserati showed a 52% year-on-year decline in revenue with a drop from €1.31 billion (R26 billion) in H1 2023 to €631 million (R12.5 billion) in H1 2024.
The company credits this performance to the discontinuation of several volume models over the last year. At the end of 2023, it ceased production of the Ghibli and Quattroporte, and in March 2024, it stopped assembly of the Levante.
As a result, the marque now has only three products in its portfolio: the Grecale crossover, the GranTurismo coupe and convertible, and the MC20 coupe and roadster – the latter two of which are relatively niche offerings.
Stellantis CFO Natalie Knight commented that if Maserati continues on this trajectory, the point may come where the company takes a look at “what’s the best home” for the Italian brand.
Jeep is feeling the heat, too. Its sales in the United States – its biggest market – fell 19% in Q2 2024, forcing Stellantis to bring back the discontinued Cherokee in a bid to revitalise its sales departments.
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