The first half of 2024 has not been kind to car industry giant Stellantis, which has seen its profits drop by 48 per cent versus the same period in 2023. While the company attributes much of this drop to lots of production gaps as new models are introduced, and forecasts a stronger close to the year, its CEO has nevertheless threatened to take action if certain brands don’t contribute to profits.
Stellantis formed in 2021 as the result of a merger between Fiat Chrysler Automobiles and the Peugeot–Citroen group (which itself had purchased Vauxhall and Opel from General Motors not long before that). As a result, it controls a sprawling 14 brands from both Europe and North America (plus 20 per cent of Chinese firm Leapmotor).
DS 7
Speaking to reporters, including Reuters, in the wake of reporting its first half results, CEO Carlos Tavares said: “If [brands] don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money.”
Which brands are at risk is currently unclear – Stellantis doesn’t report figures for individual manufacturers besides Maserati, which posted a painful operating loss of €82 million between the start of the year and the end of June.
It’s been suggested that the company might try to sell Maserati to a new owner rather than kill it off altogether. Per Automotive News Europe, Stellantis’ chief financial officer Natalie Knight said: “There could be some point in the future when we look at what’s the best home for [Maserati].”
Lancia Ypsilon
Analysts have also suggested that DS, Citroen’s premium offshoot, and Lancia could be at risk of being dropped. The latter would come as a particular surprise given the company’s just unveiled its new Ypsilon, together with an expansion into further European markets, and more new models in the pipeline.
Stellantis is launching 20 new models across its brands throughout 2024, around half of which are already in production. It’s hoping these will help turn around its decline in profits and stop it from selling or killing any of its brands, which it previously said all had a future in 2021.
