Stellantis boss Tavares ready to eliminate unprofitable brands

Does Stellantis boss Carlos Tavares read InsideEVs? Probably not, but shortly after we wrote in an article that for some of the 14 Group brands the question arises as to whether the effort is worth it, the CEO is now making a move in precisely this direction.

On Thursday, Tavares had to report poor figures. In the first half of 2024, sales fell by 12 per cent to 3.0 million cars. But more importantly, net profit plummeted by 48 per cent compared to the same period last year. As a result, the share price plummeted by 10 per cent, Reuters reported. The share was already weakening before that: Around €27 per share were paid in spring 2024, now it is only €16 - a drop of around 40 per cent.

In the face of this mess, the CEO is now prepared to sacrifice unprofitable brands. "If they don't make money, we will close them," said Tavares. You can't "afford to have brands that don't make money." With these statements, the company boss made a U-turn, as he had previously always said that all 14 brands had a future.

DS 3 E-Tense: Only 28 units were sold in Germany in the first half of the year

Fiat E-Ulysse: 18 units in Germany in the first half of the year

Tavares did not say which brands are at risk of being cancelled, but there are some that only sell a few cars, including Chrysler, DS, Lancia and Maserati. Stellantis does not publish profit figures, with one exception: Maserati reported a loss of €82 million in the first half of the year.

The Stellantis Group was created in 2021 through the merger of PSA (Opel, Peugeot, Citroën) and Fiat Chrysler (Fiat, Alfa Romeo, Jeep, Maserati). 14 brands belong to it: Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall. Another brand, Leapmotor, is to be launched in the autumn, although only a cooperation has been agreed, not a takeover.

The situation of Stellantis in North America is particularly difficult. Tavares now wants to work out solutions with his US team. Europe, on the other hand, is hardly or not at all affected: "We believe that the work in Europe is done," said Tavares. "In the USA, the work is not yet done and we will now take care of this work." In general, Stellantis has too much stock in North America, which indicates weak sales. That's why they want to reduce production and lower prices.

Chrysler Pacifica: The brand's only model to inherit the Town

Following the discontinuation of the 300C, Chrysler now only has one model, the already ageing Pacifica. Ram and Jeep, on the other hand, are a plus point due to their high margins, although the model changeover of the Ram 1500 pick-up could be a temporary burden. Finally, Dodge is probably suffering from the discontinuation of the Challenger, while the Charger at least lives on as an electric car. 

The Opel Grandland Electric is the equivalent of the Peugeot E-3008

The Fiat Grande Panda Electric is expected to cost less than 25,000 euros

Despite the financial misery, the group has big plans. There are to be 20 new models in 2024. The latest electromobility project is the new vehicles based on the Smart Car Platform, including the Fiat Grande Panda Electric, the Opel-Vauxhall Frontera Electric and the Citroën e-C3 and its Aircross derivative. 13 models based on the low-cost architecture are planned by 2026, although not all of them will be offered in Europe. 

In addition, the Peugeot E-3008 and E-5008, the Opel-Vauxhall Grandland Electric, the Jeep Wagoneer S and the Dodge Charger Daytona are the first cars based on the STLA platforms. The Alfa Romeo Junior Electric and the Lancia Ypsilon Electric, new derivatives of the well-known eCMP platform, are also waiting in the wings.

More about the electric car market:

Stellantis has 22 electric models, but how are they selling?

Study: Dip in demand for electric cars will soon be over

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The bottom line

Stellantis made significantly less profit in the first half of 2024 than in the same period of the previous year. This is gnawing at Group CEO Tavares, who has had a good reputation for cost minimisation since the successful restructuring of Opel. The CEO is now also prepared to slaughter sacred cows. Chrysler, for example, could be targeted, as the Group has particularly low margins in North America. 

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