1976 Lancia Scorpion on 2040-cars

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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.

Kimera EVO37 Martini 7 celebrates Martini Racing's seven WRC trophies

Two years ago, Kimera launched its EVO37, a modern and thoroughly gorgeous tribute to the 1983 Lancia 037 World Rally Championship car. When Kimera put its EVO37 on the start line of the Sardinia Rally last year, the coupe wore the same Martini Racing Team colors used by the 1983 car. This year, Kimera is using a different Martini Racing livery to debut an evolution of the Kimera EVO37 that's even closer to the original and celebrates the seven Lancia-powered Martini Racing Team World Rally Championship titles. The 037 won a single title, the last two-wheel-drive WRC entry to do so. The Lancia Delta S4 and its variations won the remainder. Company boss Luca Betti again worked with Miki Biasion, who won back-to-back WRC Driver's Championships piloting the Lancia Delta, and Lancia engineers of the time to lighten and sharpen the EVO37 into the Martini 7. Starting with the performance mods, the supercharged and turbocharged 2.1-liter four-cylinder now makes 550 horsepower instead of 505 hp, and 406 pound-feet of torque. Power heads to the rear axle via a standard manual or optional sequential transmission, but the gears have shorter, more rally-like ratios. Gawkers are invited to further appreciate what lies behind the cockpit thanks to the new quick-release lower bumper as was found on the Lancia 037 Evo 2. Undoing the clips shows quad pipes in a white ceramic coating matching the new paintwork that runs all the way up the exhaust runners. The new carbon fiber aero package adds intakes behind the front doors, vents on the tops of the fenders, and additional descending steps in the engine cover surround. The new wheels recall the Delta Evoluzione, as does the passenger compartment, now made entirely from carbon fiber and getting the car down to about 2,425 pounds. The seats are inspired by those in the Delta S4, trimmed in blue perforated Alcantara with red stitching that matches accents on the door cards and ceiling. The gauges glow in fluorescent orange, the buttons and knobs laid out just as they were in the 1983 Lancia 037. The pearl effect white Martini Racing Livery with blue, light blue, and red strips comes most resembles that of the special edition Lancia Delta Martini 5 and Martini 6 cars, produced in the early 1990s to celebrate the Delta's fifth and sixth WRC trophies.

Fiat contemplating sub-brand to compete with Dacia, Datsun

You can add Fiat to the admittedly short list of automakers considering a low-cost brand to rival Dacia. The inexpensive Eastern European brand from Renault-Nissan has performed on the balance sheet like a premium model line, and the money the alliance is taking off the table is encouraging other players to deal themselves in. Pretty soon Nissan's Datsun sub-brand will join the Dacia party, going on sale in Russia, Indonesia and India and will claim even more rubles, rupiahs and rupees for the parent company. Volkswagen recently said it will make a decision this year on a budget line for the Chinese market. With the euthanasia of Lancia and plans to move the Fiat brand upmarket, company CEO Sergio Marchionne wonders aloud to Automotive News Europe whether there could be room for a new budget brand underneath Fiat.
We're told that the initiative has been in the idea box for five years and even moved to the stage of name considerations, like Innocenti, but worries about profit kept it from realization. If such a range were to be developed, Marchionne says it couldn't be built in Italy and stay within budget, and the company is "analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable."