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Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says
Thu, Jul 25 2024Â 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.
Build a Jeep Gladiator 392 next? The Hummer H3T Alpha blazed the trail
Tue, Nov 17 2020The 2021 Wrangler Rubicon 392 will combine the go-anywhere capability of a Jeep's iconic off-roader with the grunt of a V8 for the first time in decades. As cool as that is, we can't help but think Jeep is missing out on a huge opportunity to pair that 470-horsepower, 6.4-liter Hemi V8 with the Wrangler's pickup cousin, the Jeep Gladiator, in the form of a Mojave 392. Autoblog took part in a media Q&A session with Jeep ahead of the Rubicon 392's announcement in which the company's product higher-ups said that there are currently no official plans to build a 392 variant of the Gladiator pickup. But whether or not Jeep has plans, it certainly has precedent, and from our perspective, a market. Rewind to 2008, better known as one of the worst possible years to introduce a gas-guzzling, V8-powered pickup truck. Enter the 2009 Hummer H3T Alpha, the first variant of Hummer's midsize truck/SUV hybrid to be offered with a 5.3-liter V8. The 300-horsepower small-block was an upgrade to the sturdy but relatively uninspiring 3.7-liter inline-5 that the H3 lineup had inherited from its midsize pickup platform mates. As our Jeremy Korzeniewski noted in the Rubicon 392's introductory piece, an open-top Jeep has not been offered with an optional V8 for as long as the "Wrangler" nameplate has existed. The last Jeep 4x4 to do so was still a CJ, or civilian Jeep, and the 304 cubic-inch engine came from American Motors Corporation. Incidentally, this generation of the Wrangler is also the first to be offered in a pickup variant. Cue the beard-stroking. Now, frankly, it's not even remotely fair to compare the H3T's powertrain offerings to the decade-newer Gladiator's, but the Hummer actually boasts a few advantages over Jeep's modern pickup. While most of the Jeep's off-road specs give it an edge, the Gladiator doesn't come close to the H3T's 30.1-degree departure angle, for instance. And in more practical terms, the stubbier H3T has other maneuverability advantages. The Gladiator has 3" of wheelbase and 5" of overall length on the H3T, and a 22.4-foot turning radius to show for it. The Hummer's? Just 18.5'.
Jeep Renegade signed by the Rolling Stones brings in $46k for charity
Thu, Jan 1 2015What do Jeep and the Rolling Stones have in common? Well, they've both have been around for longer than most of us, they seem just about indestructible, and not long after one shipped out from America to help save Britain, the other lead the British Invasion of America. But the two enduring icons also came together this past summer as one sponsored the other's European tour. And while they were in Rome, Jeep had the members of the legendary rock group sign a new Renegade that just went up for auction. Bearing the signatures of the immortal Mick Jagger, Keith Richards, Ronnie Wood and Charlie Watts, this star-studded, pint-sized off-roader – the first Jeep to be built in Italy – sold for an impressive $46,000 to an anonymous bidder. That's about two-and-a-half times what the new pebble-crawler is expected to sell for when it reaches showrooms. Proceeds from the sale, handled by Charitybuzz.com, will benefit Community Links, a social-inclusion organization based in London. View 56 Photos