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CEO of European auto conglomerate Stellantis, Carlos Tavares, has told reporters the company may have to 'shut down' or sell off several underperforming car brands from its vast vehicle portfolio to maintain profitability.
Fourteen brands (fifteen if you include China’s Leapmotor) sit under Stellantis’ ownership: Alfa Romeo, Abarth, Chrysler, Citroen, Dodge, DS , Fiat, Jeep, Lancia, Maserati, Opel, Puegot, Ram and Vauxhall.
Speaking to Reuters in Milan, Tavares said bluntly of his companies brands: “If they don’t make money, we’ll shut them down”.
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“We cannot afford to have brands that don’t make money,” he said.
It’s a stark change of phrase for Tavares, who has maintained since Stellantis’ inception – following a merger between Italian-American automaker Fiat Chrysler and France’s PSA in 2021 – that each of the company's brands would have a 10-year lifeline.
"For the time being, we love them all, and you cannot kill what you love," said Tavares back in 2021.
That was the idea at least. June figures showed Stellantis' net profit was down 48 per cent compared to the first six months of last year, while revenue was also down 14 per cent.
Some analysts have pointed the finger at Maserati, which they say could be sold off later this year after operating at a loss of €82m ($136m) so far in 2024.
Looking more widely at the company’s market performance in Australia this year to date, sales results show the majority of Stellantis brands available in Australia have seen a considerable decline in sales.
The Stellantis announcement comes as automakers across Europe and North America report underwhelming sales results as they juggle the EV transition and increasing competition from China.
Stellantis Australian 2024 performance
| Brand | Australian sales | Per cent change YoY |
| Alfa Romeo | 371 | +39% |
| Citroën | 74 | -36.2% |
| Fiat | 833 | -21% |
| Jeep | 1282 | -52% |
| Maserati | 200 | -37.3% |
| Peugeot | 1190 | +0.3% |
| Ram | 2044 | -50.8% |
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