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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.

Fiat set to invest $12B on new models, stop Euro losses in 3 years

Naturally, you'd expect a massive automaker like Fiat to have an in-depth plan to exit the current European-market doldrums, and you'd expect that plan to include plenty of new vehicles to attract those precious buyers that still remain despite the financial downturn. And you'd be right, though Fiat does seem to have a few unexpected twists up its corporate sleeve.
Perhaps the biggest shocker is a report that Fiat will completely drop the Punto, a car with mass-market appeal aimed at small-car buyers cross-shopping the popular Volkswagen Polo. Its replacement will be a five-door Fiat 500 aimed at upmarket buyers (sounds awfully similar to the 500L) that will be built in Poland. Lower-end customers will reportedly be served by variants of the Fiat Panda.
Borrowing a page from the BMW, Daimler and Volkswagen playbook, reports Automotive News, Fiat is said to have plans to reignite production at its Italian factories by retooling them to build high-end vehicles from Maserati and Alfa Romeo. These will be marketed as premium products, built by skilled Italian workers (who are paid wages that are 75-percent higher than those building Fiats in Poland), and will be sold around the world.

Alfa Romeo realigns product onslaught (again)

After Sergio Marchionne announced an ambitious plan in May of 2014, Alfa Romeo has continued to struggle, pushing back launch dates and the debut of the models that would serve as the brand's new bedrock. And now it's happening again. A new investor relations document reveals that Alfa won't complete the debut of its new lineup until the middle of the next decade, and that FCA will be scaling back the brand's research and development, manufacturing, and product investments through 2018. The move is partially down to "uncertainties" in China, which gels with what we reported back in December. Alfa also needs extra time to "guarantee proper global distribution network execution," the document claims. As we've reported, the revised product cadence will still see the Giulia (pictured) and a new midsize utility vehicle hit dealers in 2016 and late 2016/early 2017, respectively. From there, Alfa is still aiming to flesh out its lineup with six more vehicles, including a fullsize sedan, two more utility vehicles, two "specialty" vehicles, and a hatchback. This new product strategy differs from the original Marchionne strategy in a few key ways. First, all of these vehicles were supposed to have been launched between May 2014 and sometime in 2018. Since it's 2016 and we can't even buy a Giulia yet, it's pretty clear that plan isn't going to happen. Instead, the six vehicles that will follow the Giulia and midsize CUV won't start arriving until 2017, with debuts continuing until at least 2020. The new product strategy also better reflects today's market. Gone are the two compact cars, and in their place is a single hatchback, arriving at the tail end of the brand's new product offensive. That might explain why the MiTo was given a stay of execution. It's no surprise to see a second utility vehicle in Alfa's plan, considering the way the segment has exploded in the past few years, while enthusiasts will likely welcome the idea of a second "specialty" vehicle. The brand's second midsize sedan has been pushed out, though, so the only Alfa four-door following the Giulia will be a fullsizer. As for Maserati, the investor relations PDF didn't list nearly as many specifics. As we've reported, FCA still expects the Levante CUV to be a growth leader for the brand by 2018. The performance brand's fortunes will also be bolstered by pairing its dealerships with those of Alfa Romeo. Related Video: