It appears that the futures for some Stellantis brands are literally hanging by a thread. The CEO Carlos Tavares has in fact issued an ultimatum, stating that all those brands that fail to generate profits that are remarkable in the coming years risk closure.
New era in Stellantis: Tavares urges a ruthless selection process
This announcement followed the release of financial results for the first half of 2024, which showed a significant decline in profits and revenues. Faced with this situation, Tavares had to emphasize the need to take fairly drastic measures in order to ensure the survival of the automotive group.
Carlos Tavares stated that Stellantis presently possesses no less than 15 brands, a number that is probably even excessive compared to what would be the current needs of the market. The CEO went on to say that if some of these do not prove to be profitable, the group will be forced to eliminate them. Obviously, this would be a really hard decision, but one that is currently necessary to remain competitive in today’s ever-changing automotive market. The Portuguese manager also wanted to clarify that this decision to be able to set aside some of the group’s brands, would not be made at all without thinking about it. It would be a choice that is dictated by the great desire to make Stellantis a competitive company in all aspects, focused strongly on its own business ideas.
The fate of Innocenti and Autobianchi in the hands of Tavares
Regarding the future of historical brands such as Innocenti and Autobianchi, Tavares clarified that no final decision has been made at the moment. However, he also stressed that the company will very meticulously evaluate every opportunity, taking into consideration both the interests of the group and the needs of the market.
Tavares also expressed a very sharp opinion on duties, calling them “a ballast for the global economy.” For according to the Stellantis CEO, the duties would only serve to disproportionately increase production costs, consequently also going to fuel inflation by weakening national currencies.
Despite the difficulties of the moment being quite evident, Stellantis continues to confirm its dedicated commitment to the development of electrified vehicles. Speaking in detail, the group has announced that production of hybrid cars will be increased, including models that were initially intended to be exclusively electric, such as those produced at the Melfi plant.