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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.

Lancia teases new concept inspired by the legendary Stratos HF

The once-storied Italian marque Lancia currently sells only one car, an underwhelming hatchback called the Ypsilon that was launched way back in 2011. However, there are signs of life at the Stellantis-owned brand. They've teased a new concept, and from what we can see it looks to be inspired by the legendary Lancia Stratos HF. So far all we have is a name, the Emozione Pu+Ra. However, the rendering that came with the announcement shows the back half of the concept with some unmistakable Stratos cues – dual round taillights, the flat and wide black spoiler, rear glass with striped shading that evokes the original's rear window louvers.  Some of those cues, like the suspended taillight rings, stem from the Pu+Ra concept unveiled at November's Lancia Design Day conference. There, the company laid out its broad plans to restore the moribund brand to its former glory with — you guessed it — a full EV lineup. It unveiled the Pu+Ra Zero concept that was more sculpture than car, lacking what some would argue to be critical components such as doors, windows, and wheels.  Lancia said the Pu+Ra name was an abbreviation of "pure" and "radical" (not plutonium and radium), and the Zero is a callback to the 1970 Stratos Zero concept. That particular Marcello Gandini wedge made a splash at the Turin Motor Show and remains to this day the most extreme of the many doorstop-shaped cars from the era.  So if the speed form is analogous to the Stratos Zero, then this next evolution in the teaser should be analogous to the Stratos HF production car. Built for Lancia's rally efforts, the singular design won three consecutive World Rally Championships from 1974-76. Obviously the mid-engined layout of the Stratos HF is irrelevant to an EV, but Gandini's brutal blade was as unprecedented as the Miura he had designed for Lamborghini. In other words, the Emozione Pu+Ra should be a distilled and purposeful looker. Lancia CEO Luca Napolitano calls the upcoming concept the company's "brand manifesto for the next 10 years." We shall see what that looks like when it's unveiled on April 15.

Stellantis wants to outfit cars with AI software to drive revenue

MILAN — Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands, hoping the tech upgrade will help it bring in 20 billion euros ($22.6 billion) in annual revenue by 2030. CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from features and services tied to the internet. That includes using voice commands to activate navigation, make payments and order products online. The company is expanding existing partnerships with BMW on partially automated driving, iPhone manufacturer Foxconn on customized cockpits and Waymo to push their autonomous driving work into light commercial vehicle delivery fleets. StellantisÂ’ embrace of artificial intelligence and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid propulsion systems, more autonomous driving features and increased connectivity in automobiles. Ford and General Motors also are banking on dramatically increased revenue from similar online subscription services. But the automakers face immense competition for monthly consumer spending from movie and music streaming services, news outlets, Amazon Prime and others. Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software would seamlessly integrate into customers' lives, with the capability of live updates providing upgraded services over time. New products will include the possibility to subscribe to automated driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower. As a baseline, Stellantis generates 400 million euros in revenue on software-generated services installed in 12 million vehicles. To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in house. Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the companyÂ’s needs and simplify the supply chain. The first microchips from the partnership are targeted to be installed in vehicles in 2024.