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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.

Chrysler recalls 1.2 million Ram pickup trucks

Chrysler has announced that it will issue three separate recalls that will cover as many as 1.2 million Ram pickup trucks for "steering-system tie rods that may have been misaligned during assembly or steering-system service." The vast majority of these trucks were sold in the United States, though some trucks in Mexico, Canada or overseas will be called in, as well.
The largest of the three recalls covers an estimated 842,400 model-year 2003-2008 Ram 2500 and 3500 trucks. Two smaller campaigns will bring 294,000 model-year 2008-2012 Ram 2500 and 3500 pickups, chassis cabs and 2008 Ram 1500 4x4 Mega Cabs; plus 43,500 model-year 2008-2012 Ram 4500 and 5500 4x4 chassis cabs into the dealer to be checked and repaired if necessary.
This is a very large recall, and Chrysler says it is "casting the net wider than necessary to identify those vehicles that require repair." The automaker estimates that "as many as 726,000 may not need repair."

2016 Jeep Wrangler recalled over impact sensor wiring

Fiat Chrysler just announced a pair of recalls totaling nearly 311,000 units. The bigger recall affects certain 2016 and 2017 model year Jeep Wranglers. Although, since FCA claims all of the affected 2017s are in the company's hands, really, only 2016 owners should pay attention here. The affected Wranglers suffer from an issue where wiring disconnects from impact sensors in certain types of crashes, potentially preventing the airbags and pretensioners from activating. FCA uncovered the problem in what its press release calls "a routine, in-house crash test" and claims "service availability is imminent." The affected Jeeps require a simple rewiring. The other recall, announced Tuesday, is more of a fleet issue, affecting 2007 to 2013 model-year Ram 2500 and 3500 pickups and 3500, 4500, and 5500 chassis cabs and 2011 to 2014 Dodge Charger Pursuit police vehicles. There's a problem with "premature diode wear" in alternators that are subject to "frequent load cycling, at or near maximum amperage, [or] in hot ambient temperatures." Affected alternators could short out, causing a vehicle to stall or potentially catch fire. FCA lists 182,743 affected Wranglers in the US, 18,011 in Canada, 3,087 in Mexico, and 20,948 in global markets. The Ram/ Charger Pursuit recall lists 74,833 vehicles in the US, 10,077 in Canada, 1,088 in Mexico, and 134 outside the NAFTA region. Of all those vehicles, the Jeep recall hasn't caused any injuries or fatalities, while FCA says it's aware of one "potentially related injury" and no accidents due to its fleet vehicle recall. FCA says it will notify owners/operators of affected vehicles when service appointments are available. As per usual, all the work is free of charge. Related Video: