[RahulNagaraj]

According to reports, Carlos Tavares, CEO of Stellantis, has stated that the conglomerate could discontinue car brands if they are unprofitable.

The Stellantis Group currently owns 14 car brands: Citroen, Jeep, Fiat, Abarth, Alfa Romeo, Maserati, Dodge, Chrysler, Ram, Opel, Vauxhall, Lancia, DS Automobiles and Peugeot. The conglomerate was born in 2021, as a result of the merger between PSA Group and Fiat Chrysler Automobiles.



The group's CEO stated, "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money." Tavares though didn't mention any specific brand, which could either be axed or is at a higher risk than others.

Stellantis is currently the fourth-largest carmaker in the world. However, the conglomerate has been suffering trying to manage the many brands. Reports state that its shares were down 22% more than expected in the first half of 2024. Also, the company's operating income plummeted by 40%, while net revenues were down 14% and net profit dropped by 48%.

Source: Reuters

Link to Team-BHP news

[chiekennugget]

The first company to get the axe is probably Maserati.

The Italian brand is in big trouble after sales in H1 2024 dropped by over 50 percent

This isn't just hot gossip as there's an actual statement from a Stellantis official. Chief Financial Officer Natalie Knight admitted there might come a time when Maserati will be up for grabs. Her exact words were: "There could be some point in the future when we look at what’s the best home for [Maserati]." This statement comes shortly after weak H1 2024 sales results. Through June, the troubled Italian marque sold 6,500 cars, a decrease of more than 50 percent compared to the first half of 2023 when 15,300 vehicles were delivered.

Source: motor1

[Solojin]

I feel the reason for this is overcrowding. When brands are struggling to establish vision and strategy for one or few brands in their control, one can imagine how hard it would be for 14 brands across very diversified platforms and target specific products. It gets tougher when investment has to be metered considering increasing demand for climate friendly products, stringent regulations and embrace latest technologies.

I sincerely hope they find a good solution rather than shutting down the iconic brands they own. I still feel selling the right products at the right market and grouping similar brands and build a common strategy for them could help as a start.

[svsantosh]

Originally Posted by RahulNagaraj

14 car brands: Citroen, Jeep, Fiat, Abarth, Alfa Romeo, Maserati, Dodge, Chrysler, Ram, Opel, Vauxhall, Lancia, DS Automobiles and Peugeot

I got to get my hands on a V8 Dodge asap! God please keep the Dodge profitable.

[anjan_c2007]

That's an indication of trouble in the boardrooms, triggered by some of the brand's balance sheets showing downslides. Chrysler had to cull brands DeSoto (1961) and Plymouth (2001) while Ford culled the Mercury brand in 2011, post the 2009 recession under ex-Boeing CEO, Alan Mullaly who became the Ford CEO prior to the global slowdown then. GM were compelled to roll down shutters on its once iconic Pontiac brand in 2010. All these decisions made were mostly due to poor sales.

Likewise, the British Motor Corporation (BMC) that emerged after the merger of all Austin and Morris brands, the brainchild of Leonard Lord (Austin CEO) in 1952, was intended to challenge GM's dominance to atleast become the world's no.2 car maker. But the many marques under its umbrella became difficult to be sustained with their erstwhile individualities and brand specific traits. Engines and platforms of brands got swapped and soon became common with just cosmetics on the exteriors, becoming the only facade for depicting each marque's signatures. BMC though flourished for 16 years till 1968, when it took over Jaguar and became British Motor Holdings to merge with Leyland Motor Corporation in 1968 and become the British Leyland Motor Corporation. By the 1980's just a few old British brands remained, post the British motor industry's near collapse. The brands Rover, Mini, Land Rover and Jaguar survived. This happens when huge conglomerates with many brands are unable to manage especially the quality and erstwhile signatures of their multiple marques.

Stellantis went on an uncontrolled acquiring spree and the galaxy of brands now under its umbrella, must have created spots of umbra and penumbra around quite a few of the marques it sells. Hence, they must have thought about removing the deadwood.

Their acquisition of HM's brand "Ambassador" in 2018 for Rs 80 crores appears to have been a futile move. Many are already relegating Ambassadors to history with an "iconic car" tag. Relaunching any new car with this marque's name could prove to be another C3/C5 misguided googly effort by Citroën at this belated stage.

[RMN]

1. Ironically the Maserati Grecale news article was right next to this thread
2. Is there any brand that's been turning a good profit for them?

[Santy19]

Classic case of a engineering company run by accountants.

There is VW which under Dr.Piech made every struggling company under its belt profitable and here is Stellantis which cant get its act right.

They would not think twice before shut the shutters of legendary nameplates like Lancia, Maserati.

Why VW succeeded and Stellantis is failing, you ask (even VW is losing its way now with their ID joke)

1. VW under Dr.Piech made a platform with the highest possible category in mind, which trickled down to lower segments which organically resulted in good high end segment car and a great low end segment car.
2. VW then used economies of scale to their favour to make profits
3. Example, VW engineered/facilitated development of a great V10 engined Lamborghini Gallardo which then organically became a great Audi R8, (psst……Car key of a multi million dollar Buggati Veyron is same as your VW POLO, just built with better materials)
4. Unlike Stellantis which developed a Citroen C3 hatch and scaled it up to a Basalt
5. This practice will may or may not make a good hatch, but it will only make a sub par higher segment vehicle.

Let us just hope they find a way to make companies profit/desirable, we need different flavours of cars

[clutchNgo]

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[Nanolover]

I think the axe should fall on their dud brands namely Abarth, Alfa Romeo, Maserati, Ram, Lancia and DS Automobiles. Makes no sense in propping up these names from a by gone era. Hardly anyone in the new age recognizes or values them ( especially Lancia, Maserati and Alfa Romeo) and most of whom who brought into them already might have had their fingers burnt with reliability/ depreciation.

[GTO]

Originally Posted by Santy19

Classic case of a engineering company run by accountants. There is VW which under Dr.Piech made every struggling company under its belt profitable and here is Stellantis which cant get its act right.

So well said! Piech is a hero, while CEOs like Sergio Marchionne & Carlos Ghosn are zeroes. Sergio & Carlos focussed purely on short-term gains via brutal cost cutting, but ended up giving their companies long-term pains.

Outdated products, damaged brands, terribly low investments in R&D and future tech...just look at the state of Nissan today. Or Fiat, Maserati, Alfa Romeo, Dodge etc. Cars from the Jeep range & pickup trucks are the only standout points for Stellantis today.

[ajmat]

Originally Posted by anjan_c2007

Their acquisition of HM's brand "Ambassador" in 2018 for Rs 80 crores appears to have been a futile move. Many are already relegating Ambassadors to history with an "iconic car" tag. Relaunching any new car with this marque's name could prove to be another C3/C5 misguided googly effort by Citreon at this belated stage.

What Stellantis never took into account that "Ambassador" is not a loved brand, people did not buy it because they wanted to. Either it was given as a department car, or you had to buy one for a large family. It was either that or a Fiat! Why would anyone buy an ambassador in any other avatar - it is signifies stodginess and the name ain't catchy

Originally Posted by Santy19

Classic case of a engineering company run by accountants.

There is VW which under Dr.Piech made every struggling company under its belt profitable and here is Stellantis which cant get its act right.

VW ensured each car had a particular niche. Seat nearly came a cropper as it failed as a sporty brand but is evolving as a sporty electric brand. in the case of Fiat, it never looked beyond Italy, Alfa has a very niche appeal, Lancia and Alfa competed in the same segment.

[ads11]

To be fair to Stellantis, the plethora of brands they inherited was primarily through PSA (Peugeot Citroen) Groups acquisition of FCA (Fiat Chrysler Automobiles) Group.

PSA Group only had the following: Peugeot, Citroen, Opel/Vauxhall (you can count these as one to my mind as Vauxhall has just been British themed and rebadged Opels since the GM days). DS was only made a full fat spin off brand late on.
5 marques

Meanwhile Marchionne is to blame for this. Pre-2008 the Fiat group already had: Fiat, Lancia, Ferrari, Maserati, Alfa Romeo
5 marques (6 if you count Abarth separately)

Add in the US acquisitions of Jeep, Chrysler, Dodge, Ram and that's now 10 marques!

I'm frankly surprised it took Tavares as long as it did to start thinking about rationalising the bloated portfolio. Like others have pointed out, VAG were able to get every brand in their umbrella to use the MQB type architectures to help simplify manufacturing, logistics, the works, whilst still retaining enough differentiation between brands (though let's not kid ourselves, there's plenty of cannibalisation that occurs within the VAG between brands - but as GTO says, better to cannibalise sales within your umbrella group companies than to an external one).

Some of those brands can definitely be culled: Lancia, Alfa (both despite being storied automotive names). I feel like some of the US brands can be culled too but good luck doing that with a potential Trump presidency or any US govt in honesty. Personally I don't get why in house tuning divisions like Abarth need to be separate brands (this is also a gripe of mine with Cupra and Polestar being spun off now as EV divisions that eventually need folding back in I reckon), DS too.

New structure:
Peugeot, Citroen, Opel/Vauxhall, Jeep, Fiat, Ram, Dodge, DS (maybe). Down from 15

[horseblood]

If Maserati goes under the hammer, I'm sure the Chinese would snap it up at the first instance. Then they'll sell Maserati branded chinese EVs, giving them better perception, more sales, higher value chain/margin & the Maserati brand gets an EV 'performance upgrade'.
Makes total sense for the Chinese given their home struggles & their hunger & desperation for overseas markets especially the high value European one.

[@PetrolheadASH]

Stellantis needs to do a serious rethink on its brand strategy. They have some good brands and products. Just need a rejig.

Look at what they are doing in India. Jeep and Citroen are both struggling.

[ajmat]

Originally Posted by ads11

Meanwhile Marchionne is to blame for this. Pre-2008 the Fiat group already had: Fiat, Lancia, Ferrari, Maserati, Alfa Romeo
5 marques (6 if you count Abarth separately)


I'm frankly surprised it took Tavares as long as it did to start thinking about rationalising the bloated portfolio. \

New structure:
Peugeot, Citroen, Opel/Vauxhall, Jeep, Fiat, Ram, Dodge, DS (maybe). Down from 15

Actually, Marchionne is not to blame except for the product strategy.

Fiat - painted itself into a corner, made good small cars but totally outclassed elsewhere, the smaller cars are made in Poland due to costs. Only other revenue are from South American markets

Lancia - Blame the Agnelli's - took it over but never nurtured or positioned the brand properly

Alfa-Romeo - Fiat was forced under pressure buy the Italian government to take it over. This was to prevent Ford. It does produce good cars but no investment in quality and in expanding the market/distribution. VW were interested but Marchionne blocked it. It could have been a turnaround like Lamborghini.

Maserati is a money pit.

The takeover of Chrysler distracted Fiat from making good cars. It ensure critical mass and thats it.

Tavares does know a thing or two. He ensured Peugeot now make good cars. The loss making GM Europe turned cash positive within a year. The merger means bigger things are at stake