Stellantis, the world's 4th largest automaker, and owner of many different brands, looks to be cutting brands.
I had no clue that Chrysler was down to just 1 vehicle, the Pacifica mini-van. Nor did I know that Dodge, which has several vehicles, may also be in potential peril.
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.png "Stellantis Will Shut Down Brands That Don't Make Money")
Stellantis, the world's fourth-largest automaker, is ready to axe any brand that doesn't turn a profit, according to CEO Carlos Tavares.
In a blunt statement reported by Reuters, Tavares said, "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money." This is quite an about-turn from what the company said three years ago, shortly after the merger, when they promised to invest in all 14 brands for 10 years.
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Stellantis, a giant formed from the 2021 merger of PSA Group and Fiat Chrysler Automobiles, oversees 14 brands: Citroen, Fiat, Opel, Vauxhall, Peugeot, Abarth, Ram, Dodge, Chrysler, Jeep, Lancia, DS Automobiles, Alfa Romeo, and Maserati. Among these, Maserati is reportedly up for sale, while Lancia and DS are possibly on the chopping block. Brands considered too big to fail include Fiat, Opel/Vauxhall, Peugeot, Citroen, Jeep, and Ram.
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The futures of Dodge, Chrysler, and worryingly, Alfa Romeo, hang in the balance. Chrysler is especially vulnerable, with its lineup now down to just the Pacifica minivan following the discontinuation of the 300C.
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Stellantis is grappling with managing its sprawling portfolio in a cutthroat industry. Shares have plummeted 22% this year due to disappointing financial results in the first half of 2024. Adjusted operating income dropped 40%, primarily due to struggles in the North American market, while net revenues fell by 14% and net profit plunged 48%.
Stellantis's no-nonsense approach underscores the harsh realities of the automotive industry, where promises can be fleeting and profitability is king.
I had no clue that Chrysler was down to just 1 vehicle, the Pacifica mini-van. Nor did I know that Dodge, which has several vehicles, may also be in potential peril.
Auto Drive
Stellantis Will "Shut Down" Brands That Don't Make Money
Stellantis, the world's fourth-largest automaker, is ready to axe any brand that doesn't turn a profit, according to CEO Carlos Tavares.
In a blunt statement reported by Reuters, Tavares said, "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money." This is quite an about-turn from what the company said three years ago, shortly after the merger, when they promised to invest in all 14 brands for 10 years.
Stellantis, a giant formed from the 2021 merger of PSA Group and Fiat Chrysler Automobiles, oversees 14 brands: Citroen, Fiat, Opel, Vauxhall, Peugeot, Abarth, Ram, Dodge, Chrysler, Jeep, Lancia, DS Automobiles, Alfa Romeo, and Maserati. Among these, Maserati is reportedly up for sale, while Lancia and DS are possibly on the chopping block. Brands considered too big to fail include Fiat, Opel/Vauxhall, Peugeot, Citroen, Jeep, and Ram.
The futures of Dodge, Chrysler, and worryingly, Alfa Romeo, hang in the balance. Chrysler is especially vulnerable, with its lineup now down to just the Pacifica minivan following the discontinuation of the 300C.
Stellantis is grappling with managing its sprawling portfolio in a cutthroat industry. Shares have plummeted 22% this year due to disappointing financial results in the first half of 2024. Adjusted operating income dropped 40%, primarily due to struggles in the North American market, while net revenues fell by 14% and net profit plunged 48%.
Stellantis's no-nonsense approach underscores the harsh realities of the automotive industry, where promises can be fleeting and profitability is king.