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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.

NHTSA still mulling crash tests for recalled Jeeps

Well, no one should ever accuse the government of not giving things plenty of thought. The National Highway Traffic Safety Administration is still debating whether it will retest any of the 1.56 million 1992 to 1998 Grand Cherokees and 2002 to 2007 Libertys that were part of a recall regarding fires after rear-end collisions. And yes, this debate has been going on for over a month. In other news...
The recall dustup started in early June, when Chrysler took the unusual position of refusing a recall request from NHTSA regarding placement of the fuel tank on the effected vehicles. NHTSA said a collision could cause a fire, a position Chrysler took issue with. Extensive negotiations ensued, with Chrysler agreeing to fit certain Jeeps with trailer hitches, which it said would provide some protection to fuel tanks mounted behind the rear axle in the event of a collision.
Part of the issue rests with the amount of data that needs to be processed, according to The Detroit News. NHTSA administrator David Strickland said during a Washington Auto Press Association meeting, "There's a lot of data and Chrysler is being very cooperative in giving us more data." Until that information has been sorted, it looks like re-testing will still be up for debate.

Are we about to see a real SUV revival?

Now that the marketplace has been oversaturated with cute-utes, crossovers, and CUV coupes, are we about to see a resurgence of real, honest-to-God SUVs? Ummm... maybe. The stars seem to be aligning in that direction, at least that's the sense I'm getting. We know an all-new Jeep Wrangler is only a few auto shows away; and that Jeep is about to introduce a new Grand Cherokee Trailhawk for 2017, in the same rugged spirit of the successful Cherokee and Renegade Trailhawks. Ford has hinted at a neo-Bronco, after showing the concept above in 2014 to wet the mouths of all those Duck Dynasty-types out there. And, and... wait for it... I recently learned that Subaru sent a questionnaire out to some Forester owners asking if they might be interested in an off-road package if it were offered. The items listed were pretty hardcore, serious stuff, such as: integrated tow/recovery hooks, additional ground clearance, more rugged wheels, skid plates, altimeter, front-view off-road camera, improved approach and departure angles, advanced differentials, Inclinometer, full-size spare tire, upgraded off-road suspension components, more aggressive tires, off-road driving mode (engine, transmission, throttle, and steering settings), more rugged styling, low-range gearing, and a more advanced traction management system. Folks that's not my wish list (well, actually it is), but those are words from Subaru, asking if that's what customers would like to see. Need proof? Go to the SubaruForester.org website. It's in a discussion there. So... no promises or guarantees here, and feel free to call me a rumormonger if you like; but the next few years could prove very interesting for those who actually do go off road. If this pans out, remember, you read it here first. Related Video: Image Credit: Ford Ford Jeep Subaru Crossover SUV Off-Road Vehicles open road