After a weak result for the first half of this year, several car brands may be sacrificed if Stellantis does not get the financial side right.
During the first half of this year, the Stellantis Group showed a poor result. Net profit fell by 48 percent in the first six months to the equivalent of just over SEK 64 billion. At the same time, operating margins decreased to below ten percent. As a response, the group may dispose of unprofitable car brands, reports Automotive News Europe.
– If they don’t make money, we can shut them down, says Stellanti’s CEO, Carlos Tavares.
Tavares has thus turned the issue around. Ever since he was appointed CEO of Stellantis, he has maintained that all 14 brands within the group have a future.
According to information, Maserati may be put up for sale, which by the way reported a loss of the equivalent of SEK 935 million in the first six months of this year. Other brands that are threatened, for example Lancia and DS, may instead be discontinued.
One explanation for Stellantis’ decline is said to be reduced demand, especially for electric cars. At the same time, competition from Chinese car manufacturers has increased.
Most acute are the problems in North America, which is a key region for the group, where deliveries decreased by 18 percent due to price pressure and models that do not attract customers.
