Stellantis It is one of the most important automotive groups worldwide. It is also one of those that brings together the most brands, being the result of the merger of PSA and FCA. However, they are aware of the complex situation of the sector and have just said that They will have no qualms about taking down brands that lose moneyThe conglomerate has been making adjustments for some time to reduce costs and improve its balance sheet, although it seems that there is still much to do. In the face of poor results in the first quarter, no doors are closed.
Carlos TavaresCEO of Stellantis, is once again bringing out the scythe of cuts and making it clear that he will not hesitate to eliminate brands that fail to remain profitable. There are a total of 14 firms currently under the Stellantis umbrella, but none are untouchable. The only requirement is that they are not loss-making. The manufacturer’s profit has fallen by 48% during the first half of the year and that has made the company’s profits fall by 48% during the first half of the year. operating margin is below 10% that they set as their goal.
The fact is that Stellantis has kept all its brands since the merger and there was no reason to think that any of them could be in danger. It should also be noted that they always publish figures at a group level, there are no individual accounts, except for Maserati accumulates a loss adjusted operating profit of 82 million euros in the first half of the year. Therefore, the premium firm could be in the spotlight along with others such as Lancia or DS due to their marginal contribution to Stellantis’ overall sales.
In markets such as Asia and Europe, they are suffering from the arrival of new Chinese manufacturers that are taking away their sales. And in the United States, which was their main focus for profits, they have experienced declines in their margins. This situation worries Stellantis executives and puts those brands that are not able to generate profits in the spotlight. They will continue with the reduction in labor costs and also in logistics costs, but we still don’t know if that will be enough.
The controversy also goes over the 40 million dollars a year that Tavares himself earns (the highest paid manager in the sector) and the Limits that this strategy could have which has been in place from the start. In Europe, it seems that they consider that the “job is done” and now the goal is to improve results in the United States.
