1989 Lancia Delta Integrale on 2040-cars

Auto blog

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.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Lancia teases battery-electric Stratos that will begin brand reset

Last November, Lancia teased its "Emozione Pu+Ra" concept. Drawn by lead designer Jean-Pierre Ploue, the showcase looked more like sculpture or a car from 2523 instead of vehicular inspiration for production models that will begin arriving this year. We simply didn't know how to read the abstractions. Lancia teased another concept earlier this month, this one leading to an eventual battery-electric rebirth of the Lancia Stratos — we made clear connections between the Pur+Ra and what's ahead. Italy's given us another taste of what's to come, this time an overhead shot of the Stratos concept we're going to see on April 15. The circle in the roof signifies at least three things. It recalls Stratos themes evident elsewhere in the dual round taillights and the curved lines on the concept that stand in for the vintage car's louvers. It also represents part of Ploue's plan for Lancia design, the creative officer saying, "Our designs will be built with iconic shapes like the circle, square and triangle." Lastly, it signifies what will be a clear panel in the roof, Lancia saying a round aperture lets in more light than a square one. We imagine there will be a few questions about that when the reveal happens. Automaker CEO Luca Napolitano told media the Emozione Pu+Ra concept embodies the next century of Lancia looks. The Stratos concept aims more near-term. It "will be very close to the production car," and the bold strokes of the design will guide coming products. That's not just about sheetmetal, either; the feature set will encompass the path forward for "sustainability, technology and electrification" as well. The first model to take the revolution to European car buyers will be a new, all-electric generation of the Ypsilon expected later this year. The supermini hatch is the only car Lancia has sold since 2015, the car's market reduced to just Italy in 2017. According to Wikipedia, the Ypsilon is still the second-most-popular car on sale in that country. It's thought the coming version will be a sibling of the electric Fiat 500.  After that, a sedan is due in 2026, and two years later, the production version of the reborn Delta. At the moment, these remain Euro-only prospects. The automaker plans to grow an online retail operation to go with sales in initial markets of Italy, France, Germany, and the UK. If all goes perfectly over the next five years, who knows how far afield a Delta EV could end up.