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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.

Dodge could return to NASCAR, Marchionne says

Fiat Chrysler Automobiles CEO Sergio Marchionne said he'd "love to" bring Dodge back to NASCAR. The news could signal a potential shift in America's favorite motorsport away from today's three-manufacturer arrangement, but we're wondering just how much sense Dodge's return would make amid NASCAR's dwindling television ratings and attendance figures. It took a visit from Ferrari at NASCAR's biggest icon, Daytona International Speedway, for the Ferrari Challenge World Finals to get Marchionne on the subject of Dodge and stock car racing. When asked about the possibility on Sunday, the FCA boss revealed he'd just spoken to NASCAR executive vice president Jim France the night before about Dodge's return. Dodge announced its NASCAR departure in 2009, as it was in the grips of a major bankruptcy alongside cross-town rival General Motors. While GM's Chevrolet brand stuck it out and won three of the last four manufacturer championships, the final Mopar-powered team flipped to Ford in 2012. Marchionne takes the blame for the decision, citing reasons that are, frankly, very good. "I am the guilty party at the table. In 2009 we came out of bankruptcy; we couldn't [justify] racing in NASCAR when I was trying to pay bills and make payroll," Marchionne said, according to Autoweek. "I think we're in a different place now." NASCAR is in a different place, too. The sport has struggled with disappointing television ratings in the past several years, and it's not uncommon to tune into races at some of the sport's marquee tracks, like Bristol Motor Speedway, and see scores of empty seats. Sponsorship dollars are also drying up. That could explain Marchionne's non-committal follow-up comments. "We need to find the right way to come back in," Marchionne said, adding that he'd revisit the idea with Jim France and International Speedway Corporation CEO and NASCAR board member Lesa France Kennedy "in short order." Related Video:

Dongfeng and PSA extend Chinese joint venture

BEIJING/PARIS — China's Dongfeng and Peugeot maker PSA are extending their business cooperation, despite the Chinese company reducing its stake in PSA to help smooth the French carmaker's merger with Fiat Chrysler Automobiles (FCA). Dongfeng said on Thursday it had agreed with PSA to extend the duration of their joint venture Dongfeng Peugeot Citroen Automobiles (DPCA). Under the deal, the venture could get the rights to PSA's new brands in China and will benefit from new technologies and intellectual properties, the Chinese company said. PSA was not immediately available for comment. The announcement comes a day after the companies said Dongfeng would reduce its 12.2% stake in PSA by selling 30.7 million shares to the French company. Analysts said the move could smooth U.S. regulatory approval for PSA's roughly $50 billion (GBP38.97 billion) merger with Italian-American carmaker FCA. The sale of Dongfeng's shares in PSA, worth around 680 million euros ($757 million), will leave the Chinese group holding around 4.5% of the merged PSA-FCA, which is set to become the world's fourth-biggest carmaker by sales volumes. "As the cooperation between Dongfeng and PSA deepens, we expect the joint venture to continue making good progress in China," a Dongfeng representative said. On a conference call, Dongfeng said DPCA would have exclusive rights to PSA's Opel cars should the partners agree to bring the brand to China, and enjoy lower prices on car parts imported from PSA. Earlier this year, a document seen by Reuters showed Dongfeng and PSA plan to cut jobs at Wuhan-based DPCA and reduce its number of car plants to try to make the venture more profitable. Chrysler Dodge Fiat Jeep RAM Citroen Peugeot China FCA PSA Dongfeng