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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.

Alfa Romeo C43 is ready for the 2023 Formula One season

Following rival Red Bull's lead, Alfa Romeo has become the second team to unveil the car it will race in the 2023 season of Formula One. (Haas has revealed its livery, but so far not the new season's car.) Called C43, the single-seater Alfa stands out from its predecessor with a new aerodynamic profile and a redesigned livery, among other changes. The C43's red and black livery is the work of the Alfa Romeo Centro Stile, which is the same design center that draws the storied Italian company's road cars. Alfa Romeo describes the C43 as an evolution of the C42, its predecessor, and it notes that a technical team led by Jan Monchaux developed it around a new, Ferrari-sourced power unit. It features several updates and numerous new parts, though full details haven't been released, and Alfa Romeo hopes the changes made to the C43 will allow its team to improve during the 2023 season. "This car is an evolution of last year's, reflecting the new regulations and introducing major changes in the areas where we found improvements to be needed. I hope it's going to be quicker than the successful car we had last year, that's what matters most, and more reliable as well: We have put a lot of effort in this direction," said Monchaux, the technical director of Alfa Romeo's Formula One team. Alfa Romeo will begin testing the C43 in Barcelona, Spain, in February, and it will then send the car to Bahrain for more testing ahead of the 2023 F1 season's first race. Valtteri Bottas and Zhou Guanyu will drive for Alfa Romeo during the upcoming season. And while the odds of non-professional drivers taking the C43 for a spin are low, anyone with or without a license will be able to drive it in the F1 2022 video game.

Fiat set to invest $12B on new models, stop Euro losses in 3 years

Naturally, you'd expect a massive automaker like Fiat to have an in-depth plan to exit the current European-market doldrums, and you'd expect that plan to include plenty of new vehicles to attract those precious buyers that still remain despite the financial downturn. And you'd be right, though Fiat does seem to have a few unexpected twists up its corporate sleeve.
Perhaps the biggest shocker is a report that Fiat will completely drop the Punto, a car with mass-market appeal aimed at small-car buyers cross-shopping the popular Volkswagen Polo. Its replacement will be a five-door Fiat 500 aimed at upmarket buyers (sounds awfully similar to the 500L) that will be built in Poland. Lower-end customers will reportedly be served by variants of the Fiat Panda.
Borrowing a page from the BMW, Daimler and Volkswagen playbook, reports Automotive News, Fiat is said to have plans to reignite production at its Italian factories by retooling them to build high-end vehicles from Maserati and Alfa Romeo. These will be marketed as premium products, built by skilled Italian workers (who are paid wages that are 75-percent higher than those building Fiats in Poland), and will be sold around the world.