Uncertain future for some Stellantis brands: profitability analysis

Gloria Fiocchi Author
Carlos Tavares, CEO of Stellantis, confirms close monitoring of the profitability of the group’s brands.
Stellantis Brands

CEO Carlos Tavares, during the Paris Auto Show, spoke in front of numerous people, also making a general point about the situation that includes the many brands that make up the entire automotive group. Of this topic, it was confirmed by Tavares that the focus is particularly on the profitability of the brands, individually speaking. Although pressure from competitors is mounting, no divestment is currently planned by Stellantis. On the contrary, the company’s intention is to try to make the most of the brands within the group that are struggling, such as Maserati.  

Tavares paying attention to the profitability of each brand

The current CEO of Stellantis thus confirmed at the Paris Auto Show that the company is putting all its attention on the profitability of each brand. Currently, no strategy is in the running for any of the most distressed brands, but despite this, Stellantis remains vigilant and monitors each brand month after month.

Tavares

For those who are not aware, we have already spoken on several occasions in the past weeks about the critical situation that is characterizing the present of the Maserati company. In fact, the brand is going through a difficult time, related to its image on the market, and not to its products as initially thought. This problem persists in a fairly pronounced way despite the fact that the automaker possesses advanced technologies and also the know-how essential to know how to compete. Tavares confirmed that Maserati is an important brand for the group, as it represents a manufacturer with a history of high prestige worldwide. He added, however, that currently the need for action to lift it up is very strong.

Stellantis

Drastic measures and competitor offers

Carlos Tavares had already highlighted in the past that in order to compete in the right way with the companies from China that are taking over and to be able to maintain the profitability of the brands, it would be necessary to put in strong efforts. These efforts did not exclude the implementation of even drastic measures, such as, for example, the closure of some plants, even if they were important to the company, or even, the sale of some of the group’s brands. As we have already anticipated on other occasions, in one of the interviews given to Tavares at the Paris Motor Show, several proposals have come from the Chinese to buy some of the brands that are currently part of the Stellantis group. Offers that at the moment, as confirmed by the CEO, were immediately rejected.

Of the many rumors we have been hearing about lately, there had also come some that spoke precisely of the divestment of some of the Stellantis brands, including Maserati itself due to its poor performance. The news then, was immediately denied by the company itself. The Stellantis automotive group, at the moment, has no plans to deprive itself of any of its brands, although the situation of some of them is not at all easy to manage. So we will see in the coming weeks, by the end of the year, what kind of turnaround the CEO and these brands will be able to give.