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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.

Consumer Reports says these are the worst new cars of 2014

Consumer Reports has announced its annual list of worst vehicles, a cringe-inducing contrast to its list of top vehicles. Ignominiously leading the way in 2014 is Chrysler, which has a staggering seven models listed.
Jeep nearly sweeps the small SUV segment by itself, with its Compass, Patriot and 2.4-liter version of the new Cherokee, while the only midsize sedans listed by CR were the Chrysler 200 and Dodge Avenger. The new Dodge Dart and the Dodge Journey round out CR's condemnation of Chrysler.
Ford is taking heat as well, with the Taurus, Edge and their counterparts from Lincoln all listed as the worst vehicles in their respective segments. Toyota doesn't fare much better, with its Lexus IS, Scion iQ and tC also making the list.

FCA issues recall for 300k Dodge Chargers over airbag sensor

Fiat Chrysler Automobiles has issued another recall, this time for the Dodge Charger. The issue stems from an overly sensitive control module that could deploy the side-curtain airbag and seatbelt pretensioner if the door is kicked or slammed too hard. The recall affects certain Charger sedans from the 2011-2014 model years, specifically those manufactured between May 6, 2010, and June 5, 2014. All told, that amounts to an estimated 322,078 units, including 284,153 in the United States, another 13,169 in Canada, 2,484 in Mexico, and 22,272 overseas. Owners of those vehicles will be asked to bring their vehicles in to their local dealers to have the Occupant Restraint Control module recalibrated, and are being advised in the meantime to "exercise caution when closing doors." If this issue sounds familiar, that's because the automaker issued a similar recall for Ram trucks just last week, affecting over 667,000 four-door pickups in the United States alone. Following a further investigation into its passenger cars, FCA found a similar problem with the Charger, whose door design mandated specific calibration of the module in question for that model. The company says it is aware of three minor injuries potentially related to the issue, but no accidents. This campaign is just the latest in a string of recall-related issues to have emerged from Auburn Hills recently. The Ram truck recall was issued in tandem with another airbag-related recall for a further million pickups. Prior to that it called in another 1.4 million vehicles to update their infotainment system software due to a security issue. Another 350,000 Dodge Journeys were called in before that to have their engine covers secured. The National Highway Traffic Safety Administration is expected to issue the company a massive hundred-million-dollar fine for failing to follow proper procedures related to safety and recall issues. Meanwhile, another NHTSA investigation that could have affected 4.7 million units was closed with no further action deemed necessary. And an appeal court judge in Georgia reduced the damages the company will be ordered to pay the family of a child who died in a fire in a Jeep Grand Cherokee. Statement: Occupant Restraint Control Module August 1, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to recalibrate control modules on approximately 284,153 U.S.-market sedans to prevent inadvertent side-curtain air-bag and seatbelt pre-tensioner deployment.