Maserati, DS and a revived Lancia have been mentioned as the first brand’s likely to be axed, with Chrysler another possibility.
Stellantis’ CEO has reportedly threatened to offload the multi-conglomerate’s poorest performing brands after posting a 14% sales loss for the first six months of the year.
Six month loss
Comprising 14 nameplates established three years ago after the signing of an agreement between Fiat-Chrysler Automobiles (FCA) and the PSA Group, the Amsterdam-based firm posted a revenue of €85-billion and a net profit 48% down year-on-year at €5.6-billion.
“The company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues,” Carlos Tavares said in a statement over the weekend.
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“We have significant work to do, especially in North America, to maximise our long-term potential.
“While corrective actions were needed and are being taken to address these issues, we also have initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well,” he said.
U-turn on decade support plan?
Despite affording each brand a 10-year lifeline to turn a profit at the creation of Stellantis, in an apparent u-turn hours after revealing the figures, Tavares told Reuters, “If they don’t make money, we’ll shut them down. We cannot afford to have brands that do not make money”.
With its exception of its investment into Chinese brand Leapmotor in May for a 20% stake, no exact numbers of each individual brand’s figures were revealed, though according to Reuters, speculation points to Maserati and DS possibly being in the firing line first.
At the same time, uncertainty continues to surrounds Lancia and Chrysler despite the former’s high profile restructuring and launch of the all-new Ypsilon in February.
Mere days before the FCA and PSA merger, it was reported that the establishing of the then already named Stellantis would spell the end for both Chrysler and Lancia based on their accounting of the smallest shares of sales.
Aside from the Ypsilon still being Lancia’s only model, the Pacifica doubles-up as the sole vehicle sold by Chrysler following the DaimlerChrysler-era 300’s official discontinuation at the end of last year with the debut of farewell edition 300C.
“You can’t be cost efficient if you keep the entire scale of both companies. We’ve seen this show before, and we’re going to see it again where they economise these platforms across continents, across multiple markets,” automotive analyst Karl Brauer told Associated Press at the time.
In a subsequent assurance of all of its brands, Taveras, according to Reuters, said, “For the time being, we love them all and you cannot kill what you love”.
“When you love them, you give them a chance. We are giving a 10-year visibility for each brand CEO in terms of product planning and funding”.
Attributing its performance to a “combination of inventory reduction initiatives, temporary production gaps due to a generational portfolio transition, and lower market share particularly in North America”, the company stated that it will continue with the roll-out of 20 products before the end of 2024, focus on the expansion of Leapmotor first in Europe and then South America, the Middle East, India, Asia-Pacific and Africa also before year-end and commercial vehicle segment dominance in the Middle East and the Africa.
Mid-month South Africa sales
Locally, the brand has introduced the updated Opel Corsa and a second model to the Citroën C3 range, while also debuting the new C3 Aircross last week in addition to preparing upgrades for the Jeep Wrangler.
The final half of the year will see the arrival of more variants to the Peugeot Landtrek range, including a single cab, which was identified in April as the vehicle Stellantis will produce at its new factory located in the Coega IDZ outside Gqeberha from 2026.
Based on mid-year sales figures, Stellantis South Africa, whose marques comprise Alfa Romeo, Citroën, Fiat, Jeep, Opel and Peugeot have sold 2 774 units with a best of 571 units in June headed by the C3 (164) and Landtrek (137).
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