Stellantis to kill off brands that don't make money, confirms CEO

Stellantis is currently the fourth-largest carmaker in the world.

According to reports, Carlos Tavares, CEO of Stellantis, has stated that the conglomerate could discontinue car brands if they are unprofitable.

The Stellantis Group currently owns 14 car brands: Citroen, Jeep, Fiat, Abarth, Alfa Romeo, Maserati, Dodge, Chrysler, Ram, Opel, Vauxhall, Lancia, DS Automobiles and Peugeot. The conglomerate was born in 2021, as a result of the merger between PSA Group and Fiat Chrysler Automobiles.

The group's CEO stated, "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money." Tavares though didn't mention any specific brand, which could either be axed or is at a higher risk than others.

Stellantis is currently the fourth-largest carmaker in the world. However, the conglomerate has been suffering trying to manage the many brands. Reports state that its shares were down 22% more than expected in the first half of 2024. Also, the company's operating income plummeted by 40%, while net revenues were down 14% and net profit dropped by 48%.

Source: Reuters