Stellantis, a major automotive group that includes Dodge, Fiat, Jeep, Maserati, and Ram, is considering a more aggressive approach toward eliminating brands that fail to generate profits. CEO Carlos Tavares has indicated the company might cut underperforming brands, as reported by Reuters. This announcement follows disappointing sales figures for the first half of the year.
For Stellantis, it’s a straightforward business decision. According to Reuters, Tavares is ready to discontinue brands that aren’t financially successful. This approach comes in response to lackluster financial results from the first half of 2024.
While Maserati reported losses in the tens of millions, Stellantis generally does not disclose financial details for each brand.
“The company’s performance in the first half of 2024 didn’t meet our expectations due to both a tough industry environment and internal operational challenges,” Tavares stated. “If brands are not profitable, we will close them. We cannot sustain brands that aren’t making money.”
This represents a shift in strategy for Tavares, who had previously supported Stellantis’ various brands since the merger in 2021.
He mentioned plans to work with his team in the U.S. over the summer to enhance sales and decrease dealer inventory. Part of this strategy involves introducing 20 new models worldwide this year to boost sales.
Stellantis is particularly focused on improving its performance in North America, where sales have fallen short. “We feel our job is done in Europe,” Tavares noted. “The task is not finished in the U.S., and we are now focusing on that.”
This could pose a threat to brands like Maserati and Fiat, which are part of Stellantis but have lower sales volumes. As of 2024, Fiat only offers the revamped 500e in the U.S. market. In contrast, Maserati maintains a diverse lineup of traditional and electric vehicles, including cars and SUVs, to attract a broader audience.
