{"id":74854,"date":"2024-07-26T09:03:28","date_gmt":"2024-07-26T13:03:28","guid":{"rendered":"http:\/\/autosector.com\/?p=74854"},"modified":"2024-07-26T09:03:28","modified_gmt":"2024-07-26T13:03:28","slug":"1143931_stellantis-ready-to-drop-underperforming-brands","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=74854","title":{"rendered":"Stellantis ready to drop underperforming brands"},"content":{"rendered":"<ul>\n<li><strong>Stellantis&#8217; CEO said he&#8217;ll shut down brands that aren&#8217;t performing<\/strong><\/li>\n<li><strong>In 2021 Stellantis committed to 10-year investments for each of its brands<\/strong><\/li>\n<li><strong>Stellantis&#8217; net profits for the first half of 2024 were down 48% year-over-year<\/strong><\/li>\n<\/ul>\n<p>Stellantis&#8217; CEO Carlos Tavares warned that some of its brands <strong>could be dropped<\/strong> if they continue to underperform, after the automaker on Thursday reported a 48% drop in profits for the first half of 2024.<\/p>\n<p>Stellantis, which was formed in 2021 following the merger of Fiat Chrysler Automobiles and France&#8217;s PSA Group, <strong>has 14 brands<\/strong> in its portfolio, including Chrysler, Dodge, Jeep, and Ram, as well as premium European brands Alfa Romeo and Maserati. It also counts <a href=\"https:\/\/www.motorauthority.com\/news\/1141300_stellantis-signs-deal-to-export-evs-of-china-s-leapmotor\" target=\"_blank\" rel=\"noopener\">China&#8217;s Leapmotor<\/a> 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.<\/p>\n<p><span id=\"static-marker-video-player-primis\"\/><\/p>\n<p>&#8220;If they don&#8217;t make money, <strong>we&#8217;ll shut them down<\/strong>,&#8221; Carlos Tavares told reporters, including <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/stellantis-misses-forecasts-with-h1-drop-revenue-operating-income-2024-07-25\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>. &#8220;We cannot afford to have brands that do not make money.&#8221;<\/p>\n<p>Tavares as recently as 2021 said Stellantis is committed to <a href=\"https:\/\/www.motorauthority.com\/news\/1122414_stellantis-pledges-10-year-investment-for-each-of-its-brands\" target=\"_blank\" rel=\"noopener\">a 10-year investment<\/a> for each of its brands.<\/p>\n<p>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.<\/p>\n<p>Stellantis reported net profits of 5.6 billion euros (approximately $6 billion) in the first six months of the year, <strong>down 48%<\/strong> 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).<\/p>\n<p>Tavares said declining performance in the U.S. caused by <strong>high inventories<\/strong> and declining market share was the main cause for the slump in profits, and that turning the ship around is now his main task.<\/p>\n<p>&#8220;We consider that the job is done in Europe,&#8221; Tavares told reporters, referring to the cutting of inventory levels. &#8220;The job is not done in the U.S. and we are now going to take care of that work.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stellantis&#8217; CEO said he&#8217;ll shut down brands that aren&#8217;t performing In 2021 Stellantis committed to 10-year investments for each of its brands Stellantis&#8217; net profits for the first half of 2024 were down 48% year-over-year Stellantis&#8217; CEO Carlos Tavares warned that some of its brands could be dropped if they continue to underperform, after the 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