Stellantis To Axe Underperforming Car Brands After Posting 48% Drop In Profits For The First Half Of 2024

Stellantis CEO threatens to axe underperforming car brands after posting 48 per cent drop in profits for the first half of 2024.

The automaker reported net profits of €5.6b in H1 2024 (€11b in H1 2023), while revenues also dropped 14% to 85 billion euros.

Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France’s PSA Group.

It has 14 brands in its portfolio, including Dodge, Jeep and Ram as well as premium brands like Alfa Romeo and Maserati.

Stellantis’ Chief Executive Officer (CEO), Carlos Tavares, has threatened to drop underperforming car brands in its portfolio after the auto group reported a 48% drop in profits for the first half of 2024.

“If they don’t make money, we’ll shut them down,” Carlos Tavares told reporters on Thursday, adding that “We cannot afford to have brands that do not make money.”

Stellantis reported net profits of 5.6 billion euros in the first six months of 2024, down 48% compared with 11 billion euros in the same period last year, while revenues also dropped 14% to 85 billion euros.

Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France’s PSA Group. The world’s No. 4 automaker has 14 brands in its portfolio, including Chrysler, Dodge, Jeep, and Ram, as well as premium European brands like Alfa Romeo and Maserati.

Stellantis also counts China’s Leapmotor as a 15th brand in its portfolio, after agreeing a broad cooperation with the group to build and market some Leapmotor electric vehicles outside of China.

Per Reuters report, Tavares would be working with his U.S. team on how to improve performance and cut inventory.

“We consider that the job is done in Europe,” he said, adding that “The job is not done in the U.S. and we are now going to take care of that work.”

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