Stellantis, with 15 brands under it, is an uncompetitive giant. Absolutely not for CEO Carlos Tavares. “Stellantis is big enough to compete globally, Marchionne would agree“, he answered to journalists during the conference call on the financial results of the first half of 2024. Marchionne passed away in mid-2018 and a year later FCA and PSA merged to create Stellantisa company headquartered in Amsterdam with 14 car brands and Carlos Tavares at the helm.
Today, with Leapmotor also appearing on the list (through a partnership that the CEO has defined on several occasions as “effective” and well-functioning), the results of the first half of the year are not positive and we are back to talking about competitiveness. The company’s number one confirmed the 2024 estimates, with a double-digit adjusted operating profit margin, however, despite the fact that according to him FCA and PSA “were too small” to compete globally, nowadays he said ready to cut the “non-performing” brands.
Those who don’t make money close down
Tavares has defended all the Group’s brands to date. However, in the 2024 half-yearly report, the only figures released on theperformance of individual brands are those of Maserati, which posted an adjusted operating loss of 82 million euros in the first half. Three months ago Tavares defended the Trident brand, saying that rumors of a possible sale were unfounded.
However, speaking of a reality of 15 brands he said: “If they don’t make money, we will close them. It’s very simple because we are talking about a very difficult transition periodso we can’t afford to have brands that don’t make money.”
In recent days, rumors have also emerged that the government would like to sell the Innocenti and Autobianchi brands, owned by Stellantis, to potential Chinese manufacturers. On this point, Tavares replied: “None of this has materialized. And if one day it does, we will decide everything we need to decide.”
“It all starts with the product”
Speaking to reporters about the financial results and upcoming challenges, many asked Tavares how Stellantis will remain competitive. The CEO said he was first certain that drivers want to buy electric cars at today’s ICE priceso the company’s goal is first and foremost that.
While it is “very difficult” to answer how he will be able to do this, Tavares is sure that it must first be “work on structural costsreduce both fixed and variable ones”.
“Price is not an absolute concept,” he explained, and what always matters is first of all the productits quality and its appeal. For this reason – he continued – we are “extremely cautious in launching new products, because they want to aim for 100% customer satisfaction”.
Source: it.motor1.com
