Amid reporting disappointing results during Stellantis' (STLA) first-half 2024 earnings call on July 25, CEO Carlos Tavares said there was "significant work to do" to propel the company forward.
Along with a range of brands that include American household names like Dodge, Ram Trucks, and Jeep and European staples like Fiat, the multinational automaker also features some less popular brands that hurt its bottom line.
Tavares gave a clear, stern warning to the 14 auto brands that it carries under its belt.
"If they don't make money, we'll shut them down," Tavares said. "We cannot afford to have brands that do not make money."
Though much speculation was brought up regarding which brands may be handed the axe, Stellantis CFO Natalie Knight hinted at one brand that may see the chopping block if it doesn't get this act right.
Maserati
Stellantis is losing money on luxury brand
According to a recent report by Automotive News Europe, Knight hinted that poor first-half 2024 performance by Italian luxury and performance brand Maserati may lead to the brand finding a new owner.
By the numbers, Maserati is not exactly in pole position when it comes to its performance. Global sales are down over 50%, from 15,300 cars sold from January to June 2023 to just 6,500 cars during the same period in 2024.
The dismal performance means that the Trident lost an equivalent of $88.6 million during the first half of 2024, compared to a profit of nearly $130 million during the same period in 2023.
"The first half has been disappointing," Knight said. "The future is about how we maintain best value. There could be some point in the future when we look at what’s the best home for [Maserati]."
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Maserati's losses can be attributed to a major shift that has drastically reduced the amount of cars it currently offers. Over the past year, the Trident has sunsetted some of its more volume-driven, "mainstream" models, such as the Levante SUV, the Quattroporte sports sedan, and its smaller sibling, the Ghibli.
Though the brand has introduced new and enticing versions of the GranTurismo and GrandCabrio sports cars, including electric versions and the compact Grecale crossover SUV, it struggles to remain profitable.
Where could Maserati go?
The news comes as Stellantis reports results that fall short of its expectations. It blames a "challenging industry context" and its own "operational issues" for much of the damage, as well as operations in North America. As a result, Stellantis is open to radical ideas that could boost its profitability.
Maserati's own product timeline predicts that it will remain fairly stagnant until the Levante SUV's full-electric successor is revealed in 2027, followed by a new electric iteration of the Quattroporte sedan in 2028.
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Automotive News Europe associate publisher and editor Luca Ciferri noted in a recent piece that fellow Italian sports car marque Ferrari (RACE) could be the best candidate to acquire Maserati if Stellantis decides to let it go.
From 1997 to 2005, the Prancing Horse was the Trident's home. During its ownership, Ferrari made powertrains for Maserati and even lent the chassis of its Enzo supercar to build the Maserati MC12.
In the present day, Ferrari is doing well financially compared to Maserati. In 2023, it yielded $6.5 billion in revenue, largely from the sales of its sports cars. Additionally, they could benefit from acquiring Stellantis-developed EV technology, as well as having a volume-driven brand that would protect the "exclusivity" of the Ferrari badge.
Maserati speaks out
In a statement to TheStreet, Stellantis and Maserati stated that it "has no intention of selling the Trident brand, just as there is no intention of aggregating Maserati within other Italian luxury groups."
The duo continues on to say that Stellantis is committed to keeping Maserati as its "unique luxury brand" among the 14-brand portfolio and that it is in a transition period toward electrification.
Additionally, they say that Maserati is focused on a "major challenge" to strengthen its global presence and brand strength and to "underline the uniqueness of its products."
"Stellantis reaffirms its commitment to its entire portfolio of 14 iconic brands and recalls that each of them has a 10-year horizon to build a profitable and sustainable business, while recognizing that market volatility and temporary situations may cause fluctuations."
Stellantis, which trades under STLA on the New York Stock Exchange, is down 1.35% since the opening bell, trading at $16.76 at the time of writing.
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