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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.

FCA adds 88k Dodge Challengers to Takata inflator recall

The Takata airbag inflator recall from FCA US is growing 88,346 vehicles larger in the US after the company's discovery of the faulty parts in the 2008-2010 Dodge Challenger. The affected examples have production dates between September 19, 2007, and October 29, 2010, and the coupes need the replacement components on the driver's side. According to chronology posted by the National Highway Traffic Safety Administration (as a PDF), the automaker was auditing the models covered under the campaign in July and "identified a population of vehicles that was inadvertently excluded." Initially, FCA believed these cars were using an unrecalled Takata inflator. The audit revealed that the affected cars indeed used a recalled version. As with the rest of the faulty parts, exposure to moisture can cause them to ignite too quickly during an airbag deployment and spray shrapnel at occupants. The problem has been linked to at least eight deaths worldwide and a vehicle fire in Japan. The Challenger wasn't previously part of FCA's 3.3-million unit national campaign or the subsequent expansion. According to FCA US the parts to complete the repairs in these Challengers aren't currently available. However, owners will be notified of the issue by mail starting August 14. They will receive a second notice when the parts become available. Related Video: RECALL Subject : Driver Side Frontal Air Bag Inflator May Rupture Report Receipt Date: JUL 10, 2015 NHTSA Campaign Number: 15V444000 Component(s): AIR BAGS Potential Number of Units Affected: 88,346 All Products Associated with this Recall Vehicle Make Model Model Year(s) DODGE CHALLENGER 2008-2010 Details Manufacturer: Chrysler (FCA US LLC) SUMMARY: Chrysler (FCA US LLC) is recalling certain model year 2008-2010 Dodge Challenger vehicles manufactured September 19, 2007, to October 29, 2010. The affected vehicles are equipped with a dual-stage driver frontal air bag that may be susceptible to moisture intrusion which, over time, could cause the inflator to rupture. CONSEQUENCE: In the event of a crash necessitating deployment of the driver's frontal air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death. REMEDY: Chrysler will notify owners, and dealers will replace the driver's frontal air bag inflator, free of charge. Parts to remedy the vehicles are not currently available. Interim notices will be mailed to owners beginning August 14, 2015.

Chrysler's Woodward Dream Cruise festivities include Ram concept truck debut

The streets will be crowded next weekend along Woodward Avenue in Royal Oak, Michigan for the 19th Annual Woodward Dream Cruise. As part of the run-up to the festivities, Chrysler has announced that all of its brands - Chrysler, Jeep, Dodge, Ram, Fiat, SRT and Mopar - will bring along their latest vehicles. Also included will be a collection of classic American cars and various activities for attendees at the official Chrysler location on the corner of Woodward and 13 Mile Road.
Special to this year, Ram brand director Bob Hegbloom and head of design John Dehner will unveil a Ram concept truck on Saturday. Chrysler will also bring Ryan Friedlinghaus of West Coast Customs fame along to show off a few custom Chrysler-made vehicles of his own. Fans of the brand on Facebook will get the chance to virtually customize a vehicle from the automaker's portfolio, with the winner getting their dream car built for them by Chrysler. Pretty cool stuff, no?
As in past years, Ford and General Motors will have an official presence at the event as well, and you can expect to see plenty of cars of all makes and models from all parts of the globe. The madness starts this Friday, August 16, from 4:30 PM to 10 PM, with the main event taking place on Saturday, from 9 AM to 9 PM. For more details on the show, including events and their times, check out the press release below.