Stellantis CEO Carlos Tavares has announced plans to discontinue brands that do not generate profits, following a decline in the company’s financial performance for the first half (H1) of 2024.
Stellantis reported H1 2024 sales of EUR 84,504 million ($91 million), a decrease from EUR 98,063 million in the same period last year. Net income for the first half of 2024 was EUR 5,624 million ($6 million), down from EUR 10,923 million ($11 million) a year earlier.
In response to these results, Stellantis is focusing on improving margins and addressing high inventory levels in the United States. As part of its strategy, the company plans to eliminate underperforming brands. Tavares stated, “If they don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money.”
Stellantis, formed from the merger of Fiat Chrysler and PSA Group, oversees 14 brands, including Chrysler, Fiat, Maserati, Jeep, Peugeot, Ram, Dodge, DS, Lancia, Opel, Abarth, Alfa Romeo, Citroën, and Vauxhall. Tavares indicated that he will be working intensively with the Stellantis team in the U.S. to enhance performance and reduce inventory.
“We consider that the job is done in Europe. The job is not done in the US and we are now going to take care of that work,” Tavares noted.
In contrast, Stellantis reported significant growth in the European electrified vehicle market earlier in the year, claiming a leadership role in the transition to electric vehicles across key European markets.
