Automobile giant Stellantis: We will close down unprofitable brands!

European automotive giant Stellantis, which experienced a major profit decline in the first half of this year, CEO Carlos Tavares warned that the company may close or sell its unprofitable brands. In an interview with Autocar on July 26, Tavares said: “If they’re not making money, we shut them down. We cannot carry brands that are not profitable,” said.

Europe’s automotive giant Stellantis plans to close or sell its unprofitable brands

Stellantis company Ferrari, Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall It is known that it contains brands. The company experienced a 48 percent decrease in profit in the first half of this year, falling to approximately 5.6 billion euros. In other words, the situation for Stellantis is much worse than in previous years.

This statement attracted a great deal of attention among Maserati’s management team, as Maserati reported an operational loss of 82 million euros in the period. Analysts think that this situation may increase the possibility of Maserati being put up for sale, as Stellantis makes a loss instead of a profit.

According to the same analysts, brands such as DS and Lancia are also at risk of being cut as they do not contribute significantly to the group’s total sales. Tavares, “The purpose of these brands is to be evaluated. “If they cannot realize the value they represent, the company will make a decision accordingly.” he added.

Stellantis attributed its poor profit performance in the first half of this year to the decline in sales due to the shrinkage in its product range. This decline is also attributed to the cost of living crisis across Europe and apathy in North America. Additionally, the launch of new versions of models such as the Peugeot 3008 and 5008 also affected performance.

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