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Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says

  MILAN — Stellantis is taking steps to fix weak margins and high inventory at its U.S. operations and will not hesitate to axe underperforming brands in its sprawling portfolio, its chief executive Carlos Tavares said on Thursday. The warning for lossmaking brands is a turnaround for Tavares, who has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. "If they don't make money, we'll shut them down," Carlos Tavares told reporters after the world's No. 4 automaker delivered worse-than-expected first-half results, sending its shares down as much as 10%. "We cannot afford to have brands that do not make money." The automaker now also considers China's Leapmotor as its 15th brand, after it agreed to a broad cooperation with the group. Stellantis does not release figures for individual brands, except for Maserati which reported an 82 million euro adjusted operating loss in the first half. Some analysts say Maserati could possibly be a target for a sale by Stellantis, while other brands such as Lancia or DS might be at risk of being scrapped given their marginal contribution to the group's overall sales. Stellantis' Milan-listed shares were down as much as 12.5% on Thursday, hitting their lowest since August 2023. That brings the loss for the year so far to 22%, making them the worst performer among the major European automakers. Few automotive brands have been killed off since General Motors ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008. Tavares is under pressure to revive flagging margins and sales and cut inventory in the United States as Stellantis bets on the launch of 20 new models this year which it hopes will boost profitability. Recent poor results from global carmakers have heightened worries about a weakening outlook for sales across major markets such as the U.S., whilst they also juggle an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. Japan's Nissan Motor saw first-quarter profit almost completely wiped out on Thursday and slashed its annual outlook, as deep discounting in the United States shredded its margins. Tavares said he would be working through the summer with his U.S. team on how to improve performance and cut inventory.

Dodge, Jeep and Ram could soon be owned by Chinese automakers

For the past several years, Fiat Chrysler CEO Sergio Marchionne has made it widely known that the automaker he helms is up for grabs. First, he sent an email to GM CEO Mary Barra, who immediately refused to even discuss a merger. Later, Marchionne set his sights on Volkswagen. That too was swiftly rebuffed. It seemed like no global automaker was remotely interested in a partnership. Now, Automotive News reports that several Chinese automakers have come calling, only FCA isn't ready to answer. At least not yet. The news broke this morning that a major Chinese automaker had made an offer to purchase FCA for slightly above market value. FCA refused, saying the offer wasn't quite generous enough. It's unclear which automaker made the offer, but Automotive News says there's more than one interested party. FCA representatives have recently traveled to China to meet with Great Wall Motors, while Chinese representatives were seen at FCA corporate headquarters in Auburn Hills, Mich. The Chinese government has a lot of money invested in local automakers. It's putting pressure on these automakers to expand globally, including to the United States. As it stands, it's a matter of when a Chinese automaker will start selling cars here, not if. Purchasing an established automaker with a wide range of products and a huge dealer network would do wonders in giving the Chinese a foothold here. Sure, Geely owns Volvo, but a luxury automaker doesn't have nearly as much reach as a more mainstream company like FCA. This seems like the best case scenario for both a Chinese automaker looking to move into the U.S. and for FCA, at least from a business standpoint. The latter doesn't seem to have any other interested parties. It will be interesting to see how FCA would sell a deal like this to the public. We're not sure everyone will be happy with Dodge, Jeep and Ram falling under Chinese ownership. FCA didn't turn down the Chinese because they didn't like the idea. It turned down the offer because there wasn't enough money on the table. Related Video: News Source: Automotive News Earnings/Financials Alfa Romeo Chrysler Dodge Fiat Jeep RAM

Alfa Romeo could reportedly bring Sauber F1 tech to its road cars

In the summer of 2018, Alfa Romeo laid out its five-year plan, only weeks before former Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne passed away. Alfa ambitiously projected several new vehicles of various shapes, sizes and performance levels but gave only vague details. A new report from Piston Heads adds a layer of color to the timeline, suggesting one or more of these upcoming rides could feature influence from Alfa Romeo's Formula 1 partner Sauber. PistonHeads.com recently had the chance to chop it up with Sauber Team Principal Frederic Vasseur at the F1 pre-season sessions in Barcelona, where Alfa Romeo and Sauber were testing out their just-unveiled 2019 car. According to the brief conversation, Alfa and Sauber have collaborations in the works beyond the paddock. "We are already working on another project together and you will see the result quite soon," Vasseur told PH. "It's a huge opportunity for us, but it will involve only the guys at the factory in Switzerland, as the trackside guys are focussed on the racing." Vasseur later tipped that they might have several projects in development. Without any more details, there's a lot of room for speculation, so let's quickly unpack what Alfa has already admitted to be planning. In addition to two new SUVs that will launch in the upcoming years, the performance-minded Italian brand said it would resurrect two well-known and highly desirable nameplates: 8C and GTV. Both cars will reportedly be hybrids, with the 8C serving as a halo mid-engined supercar, while the GTV will essentially be a Giulia coupe, complete with an eventual Quadrifoglio variant. Considering how great and high-powered the current Giulia and Stelvio Quadrifoglios already are, it seems unlikely these projects would deal with those current models. It's possible Sauber is helping Alfa Romeo with the GTV, as previous reports suggested the two-door will have F1-derived technology, but it is unclear if the coupe is coming "quite soon." It's also possible that Sauber is collaborating with Alfa on all of its upcoming performance electrification and hybrid technology. For now, it's a guessing game, but if the reports are accurate, we won't have to wait much longer to learn more. News Source: Piston Heads Rumormill Alfa Romeo Crossover Racing Vehicles Performance Sedan F1