Automotive giant Stellantis, which owns brands like Alfa Romeo, Chrysler, and Jeep, is ready to make some tough decisions in order to turn right the ship after a disappointing first half of 2024. This might include axing some of the company’s money-losing brands, according to CEO Carlos Tavares.
Sharing its Q2 earnings report last week, Stellantis revealed a 13.57% drop in revenue and a 48.51% drop in net income. The company also saw its deliveries in North America plunge by 18%, shipping 838,000 units.
In this week’s chat with Bloomberg, Tavares indicated that Stellantis will likely reduce production in North America to address the high inventory while also saying that price cuts are incoming. He further added that the brands that continue to underperform will come at risk of being axed.
“If they don’t make money, we’ll shut them down,” Tavares said.
Stellantis’ CFO Natalie Knight previously hinted at this kind of approach during an earnings call with analysts.
“We’ve made tough decisions in the first half and won’t hesitate to make them again in the second half,” Knight said.
Stellantis currently owns 14 brands. Some of them, like Chrysler, Fiat, Jeep, and Dodge, are considered to be too valuable to cut. However, others like Lancia, Alfa Romeo, and particularly Maserati are believed to be at risk.