July 29, 2024 – Following a significant drop in profits during the first half of this year, Stellantis CEO Carlos Tavares has indicated a possible sale of the company’s underperforming brands. In an interview on the 26th, as reported by Autocar, Tavares warned, “If they are not profitable, we will shut them down. We cannot afford to keep non-profitable brands.”
This year, the European automotive giant Stellantis, which owns brands like Peugeot, Vauxhall, Fiat, and others, experienced a steep 48% decline in profits compared to the same period last year, amounting to approximately 5.6 billion euros.
According to the report, Tavares’ warning has generated significant concern within the management of Maserati, as the brand reported an adjusted operating loss of 82 million euros. Analysts suggest that this could potentially prompt Stellantis to put Maserati on the market.
Furthermore, based on comments from the same analysts, the DS and Lancia brands, which contribute minimally to the group’s overall sales, might also face the axe.
Tavares stated bluntly, “These brands exist to be utilized. If they cannot fulfill the value they represent, then the company will make corresponding decisions.”
Stellantis attributes its poor performance in the first half of the year to decreased sales caused by a reduced product portfolio. This decline is further influenced by factors such as the cost-of-living crisis in Europe and waning interest in North America. Additionally, the transition of multiple models, including the Peugeot 3008 and 5008, has impacted the company’s performance.
