Stellantis CEO Carlos Tavares has warned that underperforming brands could be dropped in spite of the 10-year timeline to get their respective acts together. Image: Robyn BECK / AFP)
Stellantis’ CEO has reportedly warned that underperforming brands within the multi-conglomerate will be dropped after global sales for the first six months of 2024 ended with a loss of 14%.
Comprising 14 nameplates established three years ago after the signing of an agreement between Fiat-Chrysler Automobiles (FCA) and the PSA Group, the Amsterdam-based firm posted a revenue of €85-billion and net profit 48% down year-on-year at €5.6-billion.
“The company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues,” Carlos Tavares said in a statement over the weekend.
ALSO READ: Union official: FCA and PSA becomes Stellantis
“We have significant work to do, especially in North America, to maximise our long-term potential.
“While corrective actions were needed and are being taken to address these issues, we also have initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well,” he said.
Despite affording each brand a 10-year lifeline to turn a profit, in an apparent U-turn hours after revealing the figures, Tavares told Reuters, “If they don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money”.
With its exception of its investment into Chinese brand Leapmotor in May for a 20% stake, no exact numbers of each individual brand’s figures were revealed, though according to Reuters, speculation points to Maserati and DS possibly being in the firing line first.
At the same time, uncertainty continues to surround Lancia and Chrysler despite the former’s high profile restructuring and launch of the all-new Ypsilon in February.
Mere days before the FCA and PSA merger, it was reported that the establishing of the then already named Stellantis would spell the end for both Chrysler and Lancia based on their sales figures being the smallest for their respective former parent brands.
Aside from the Ypsilon still being Lancia’s only model, the Pacifica serves as the sole vehicle sold by Chrysler following the DaimlerChrysler-era 300’s official discontinuation at the end of last year with the debut of farewell edition 300C.
“You can’t be cost efficient if you keep the entire scale of both companies. We’ve seen this show before, and we’re going to see it again where they economise these platforms across continents, across multiple markets,” automotive analyst Karl Brauer told Associated Press at the time.
In a subsequent assurance of all of its brands, Taveras, according to Reuters, said, “For the time being, we love them all and you cannot kill what you love”.
“When you love them, you give them a chance. We are giving a 10-year visibility for each brand CEO in terms of product planning and funding.”
Attributing its performance to a “combination of inventory reduction initiatives, temporary production gaps due to a generational portfolio transition, and lower market share particularly in North America”, the company said it will continue with the roll-out of 20 products before the end of 2024, focusing on the expansion of Leapmotor in Europe, South America, the Middle East, India, Asia-Pacific and Africa also before year-end, and remaining the number one commercial vehicle manufacturer in the Middle East and the Africa.
Locally, the Stellantis has introduced the updated Opel Corsa and a second derivative to the Citroën C3 range, while also debuting the new C3 Aircross last week in addition to preparing upgrades for the Jeep Wrangler.
The final half of 2024 will see the arrival of more variants to the Peugeot Landtrek range, including a single cab, which was identified in April as the product Stellantis will produce at its new factory located in the Coega IDZ outside Gqeberha from 2026.
Based on mid-year sales figures, Stellantis South Africa, whose marques comprise Alfa Romeo, Citroën, Fiat, Jeep, Opel and Peugeot have sold 2 774 units with a best of 571 units in June headed by the C3 (164) and Landtrek (137).
NOW READ: WATCH: New Peugeot Landtrek bakkies heading to SA (VIDEO)
Download our app and read this and other great stories on the move. Available for Android and iOS.
