Report: Stellantis Could Axe Unprofittable Brands Following Poor 1H 2024

Global automaking giant Stellantis experienced major losses with shrunken profits and income during the first half (1H) of this year.

For the first half (1H) of 2024, automaking giant Stellantis saw its profits shrink by a staggering 48% compared to the same period last year, with nett profits totalling at just US$6.07 billion. As a result, its share prices also experienced a big 8.5% drop.

At the same time, its adjusted income value dropped from US$9.22 billion recorded in 1H 2023 to just US$6.18 billion raked in during 1H 2024. These dwindling profits and income have prompted the firm to mull axing at least a few brands, revealed its CEO Carlos Tavares.

As a result, several brands are speculated to be on the chopping board, as revealed by CEO Carlos Tavares in a recent interview.

In a recent interview with Reuters, the exec blamed the firm’s latest results largely on the automaker’s poor performance in North America – specifically the United States, which is experiencing market growth – where sales dropped by 16%.

In the same interview, Tavares warned that there was no room for sentimentality when it came to loss-making marques owned by the automaker. “If they don’t make money, we’ll shut them down,” said exec during which.

Amongst the brands speculated to be in the crosshairs for possible axing include Lancia (top), DS (left) and Maserati (right).

In turn, this has prompted widespread speculation that certain brands, namely Lancia, DS Automobiles and Maserati, could face the axe. “We cannot afford to have brands that do not make money,” added Tavares further.

In fact, Tavares refuses to admit that the firm’s brutal cost-cutting measures were responsible for its poor first half performance this year, instead choosing to spin the situation positively by looking ahead.

Despite the bleak 1H 2024 results and intent to axe several brands, Tavares remains upbeat, noting that Stellantis is in the midst of a product blitz that includes things like the new Fiat Grande Panda pictured.

The former Renault exec continues further by emphasising that Stellantis is in the midst of a product blitz with no fewer than 20 new offerings set for launch this year, and that this could bring bigger, better opportunities if executed well.

Adding to which are Stellantis’ reported plans to slash product prices to position itself more competitively – a move many of its dealers have pushed for.