Fourteen. That's how many car brands Stellantis operates under the same roof. In case you don’t remember them all, here they are in no particular order: Citroen, Fiat, Opel, Vauxhall, Peugeot, Abarth, Ram, Dodge, Chrysler, Jeep, Lancia, DS Automobiles, Alfa Romeo, and Maserati. The automotive juggernaut was born in early 2021 when the PSA Group merged with Fiat Chrysler Automobiles.
The massive lineup could be streamlined at one point in the future, according to Stellantis CEO. Reuters cites Carlos Tavares saying unprofitable brands will be discontinued: "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money." It's as simple as that.
The head honcho didn't name any brands that are in jeopardy of being axed, but some are at a higher risk than others. Industry experts told Reuters that Stellantis could try to sell Maserati and kill off Lancia or DS. However, it's all speculation at this point. What we do know is there are several brands under the giant corporate umbrella that are too big to fail: Fiat, Opel/Vauxhall, Peugeot, Citroen, Jeep, and Ram.
The remaining companies are more vulnerable, although we don't want to live in a world without Alfa Romeo. Time will tell whether Stellantis will keep both Dodge and Chrysler in its vast portfolio. The latter is currently down to a single model, the aging Pacifica minivan, following the 300C's recent demise.
We remember what the very same Tavares said just three years ago. Months after the Stellantis merger was finalized, the top brass promised to invest in all 14 brands for 10 years. Well, it's only been three years and there are already worrying signs some companies might be terminated.
Stellantis is the world's fourth-largest automaker but managing so many car brands is proving to be difficult in an increasingly competitive industry. Shares are down this year by 22 percent after weaker-than-expected financial results in the first half of 2024. The adjusted operating income plummeted by 40 percent, primarily due to the North American market. Net revenues were down by 14 percent while the net profit decreased by 48 percent.
In North America, sales dropped by 18 percent compared to the first half of 2023. Stellantis mentions deliveries were down because four models have been discontinued: Dodge Charger and Challenger along with the Jeep Renegade and Cherokee. In addition, Ram 1500 sales were lower because the truck went through a mid-cycle update that slowed things down.
Elsewhere, Stellantis suffered a six-percent sales drop in the Enlarged Europe region and South America. In the Middle East and Africa, deliveries increased by three percent, primarily thanks to Fiat tripling sales.
