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Stellantis, A Conglomerate Of 14 Brands, Is Facing A Crisis. According To CEO Carlos Tavares, Unprofitable Brands May Be Discontinued, Putting Iconic Names Like Maserati And Lancia At Risk. The Company Is Under Financial Pressure, With Significant Drops In Profit And Sales. The Question Is: Which Brands Will Survive?
In The Vast Universe Of Automobile Manufacturers, Few Conglomerates Have The Diversity And Impact Of Stellantis.
The Automotive Giant, Which Emerged From The Merger Between PSA And Fiat Chrysler In 2021, Controls No Less Than Fourteen Brands.
However, Not Everything Is Rosy In The Empire Of Carlos Tavares, CEO Of The Company. He Dropped A Bombshell By Announcing That Unprofitable Brands Are Running Out Of Time, A Move That Could Change The Global Automotive Landscape.
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In An Interview With Reuters, Tavares Stated That Stellantis Cannot Afford To Keep Brands That Do Not Generate Profit.
“If They Don’t Make Money, We Will Close Them. We Cannot Afford To Have Brands That Don’t Make Money”, He Said, In A Statement That Sounded Like An Alarm In The Industry.
Although Tavares Did Not Specify Which Brands Are At Risk, Experts Point Out That Maserati, Lancia, And DS Automobiles Are The Most Vulnerable.
On The Other Hand, Giants Fiat, Opel/Vauxhall, Peugeot, Citroën, Jeep, And Ram, On The Other Hand, Are Considered “Too Big To Fail”.
According To Reuters, Looking Back At Recent History, The Situation Becomes Even More Concerning. When The Merger Was Completed, The Promise Was For Ongoing Investment In All Brands For A Decade.
However, Three Years Later, The Numbers Tell A Different Story. Stellantis Shares Have Dropped 22% This Year, With Adjusted Operating Profit Plummeting 40%, Mainly Due To Weak Performance In The North American Market. Net Revenue Fell 14% And Net Profit Shrunk By Almost Half, 48%.
In North America, Stellantis Sales Dropped 18% In The First Half Of 2024 Compared To The Same Period In 2023.
The Discontinuation Of Models Such As Dodge Charger, Challenger, Jeep Renegade, And Cherokee, Along With The Slowdown In Sales Of The Ram 1500, Directly Impacted These Numbers.
In The Broader European Market And South America, The Situation Is Also Unpromising, With A 6% Drop In Sales. However, In The Middle East And Africa, There Was A 3% Increase, Mainly Driven By Fiat Sales.
The Dilemma Of Stellantis
Stellantis Faces A Dilemma: How To Maintain The Viability Of Historic And Beloved Brands While Navigating A Challenging Economic Landscape?
The Possibility Of Selling Maserati And The Phase-out Of Brands Like Lancia And DS Automobiles Raises Questions About The Company’s Future. The Current Situation Reflects An Industry In Constant Transformation, Where Even Giants Must Adapt To Survive.
As Stellantis Navigates Troubled Waters, Car Enthusiasts Around The World Are Eagerly Awaiting To See What Decisions Will Be Made.
The Possibility Of Losing Iconic Brands Like Alfa Romeo Is A Tough Blow For Many, But The Reality Of Business Requires Tough Decisions.
Reader, In Your Opinion, Which Of These Brands Would Be The Most Missed If Discontinued? And Additionally, Which Of The Famous Brands Would You Not Care If It No Longer Existed? Share Your Thoughts In The Comments!
DS seria a que menos deixaria saudades. Porém quaquer marca descontinuada acarreta desemprego.