The evolution of the automobile sector is forcing manufacturers to measure their steps. stellantis, until now, was the reference to be followed by excellent economic results that have been achieved. However, renewing its entire range and betting on electrification has taken its toll on its account books. So much so that there are already those who warn that its future could be darker than clear according to the great number of brands that it brings together under its tutelage.
As you know Stellantis was born as a result of the merger of FCA Automobiles and Groupe PSA. The first one taught the group how to Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, spear, Maserati y RAM. The second had Citroën, DS, Opel, Peugeot and Vauxhall. However, the overlap of ranges is more than evident, especially in Europe, which is the main market where their firms operate. And to avoid problems and drops in profits, some could die.
Stellantis has seen its profits reduced by 48% in the first half…
The year 2023 was a real record year for Stellantis. The Italian-Gallo-American conglomerate achieved benefits that we had never seen in other groups and, most importantly, in a short period of time. However, it seems that the joy has been short-lived because during the first half of this year, 2024, things have become complicated. They are not on the tightrope but see their net profits fall by 48% It's a lot for a group of your entity...
If we go to the income side the figure is lower, with a 14% drop. However, we are dealing with a group that is present throughout the world and where in recent months they have lost market share. Specially in U.S. where Local brands Chrysler, Dodge and RAM are unable to come close to their rivals. And not only because its image is damaged, but also because its product offering is so limited that customers have no choice.
The example of the Stellantis situation in the US it is clearer. Sales fell 18% because four of its models stopped being sold: Dodge Charger, Dodge Challenger, Jeep Renegade and Jeep Cherokee. On the other hand, deliveries of the RAM 1500 also fell because it received a mid-cycle restyling. If we go to Europe and South America The drop in sales was 6% although in the Middle East and Africa they rose 3%.
To the decline in sales we must add the significant investments that Stellantis is making to electrify all its brands. Amen to the partial acquisition of Leapmotor (which could be its 15th brand) to improve its technology and penetration capacity in China. Finally, we cannot ignore that Fiat is the brand that sells the most of the entire group and its profit margins are not those of Opel and Peugeot with all that this entails.
Of the 14 brands of the Maserati group, Chrysler and DS could be on the tightrope...
Considering the drop in profits and income Stellantis' main shareholders are getting a little nervous. As a result of this nervousness, Carlos Tavares has been very clear: "they will eliminate all brands that do not generate money and profits". «If they don't make money, we will close them. "We can't afford to have brands that don't make money." Therefore, it seems that the decade of time they gave their brands could be reduced...
If you remember, Tavares announced that all Stellantis brands would have a chance. The term would be 10 years with the necessary financing to launch new models on the market. Once the deadline had passed, if they were not viable, what would happen to, among others, Alfa Romeo, DS or the reborn Lancia would be studied. But these three would not be the only ones in trouble because Maserati has announced an operating loss of 82 million euros.
In fact, after learning that Maserati has closed the first half of this year with these numbers, all the alarms have been activated. There are already those who say that Stellantis could sell it to the Chinese and even that he could transfer his guardianship to his Ferrari cousins. For now it is not known what will happen but DS and Chrysler are also hanging on by a thread because their contribution to the group is marginal and their elimination would not mean a great loss in sales and image.
Patience…
Source - Reuters
Images | Stellantis
More information about this model
- Plazas 2
- Power 630 cv
- Consumption 11,5 l / 100km
- Assessment 4,8