European automotive giant Stellantis, which experienced a significant profit decline in the first half of this year, has issued a warning through CEO Carlos Tavares. In an interview with Autocar on July 26, Tavares stated, “If they are not making money, we will close them. We cannot carry brands that are not profitable.”
Stellantis Plans to Close or Sell Unprofitable Brands
Stellantis is known to house brands such as Ferrari, Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall. The company saw a 48% profit decline in the first half of this year, bringing its earnings down to approximately 5.6 billion euros. This situation marks a significant downturn for Stellantis compared to previous years.
This statement has drawn considerable attention within Maserati’s management team, as Maserati reported an operational loss of 82 million euros during this period. Analysts suggest this increases the likelihood that Stellantis might put Maserati up for sale due to its unprofitability.
According to the same analysts, brands like DS and Lancia also face the risk of being cut, as they do not significantly contribute to the group’s overall sales. Tavares added, “The purpose of these brands’ existence is to be evaluated. If they cannot realize the value they represent, the company will make a decision accordingly.”
Stellantis attributed its poor profit performance in the first half of the year to a decline in sales due to a shrinking product range. This drop is also attributed to the cost-of-living crisis across Europe and lack of interest in North America. Additionally, the launch of new versions of models such as the Peugeot 3008 and 5008 impacted performance.
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