Stellantis’ profits will plummet in 2024, and some brands may be eliminated.

If Ford’s first-half financial results released this week are disappointing, the numbers at least won’t be as bad as Stellantis’. The multinational automaker group, which includes Jeep, Dodge and Fiat, said profits almost halved in the first six months of 2024.

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In the first half of this year, Stellantis’ net profit fell 48% to US$6.07 billion compared with the same period in 2023, and adjusted revenue fell by US$6.18 billion to US$9.22 billion. The news caused the group’s share price to fall 8.5%.

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Chief Executive Carlos Tavares blamed the decline mainly on performance in the United States, where sales fell 16 percent despite overall growth in the auto market, and warned there was no reason for sentimentality over money-losing brands.

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“If they’re not making money, we’ll shut them down.” Reuters This has led to speculation that Lancia, DS and Maserati could all be among those to be eliminated, Carlos Tavares told reporters: “We can’t afford a brand that doesn’t make money.”

Tavares refuses to acknowledge that brutal cost-cutting measures are to blame for the company’s woes, and instead seeks to put a positive spin on the situation by looking to the future.

“While corrective actions are needed and being taken to address these issues, we have also launched an exciting product offensive that will see no fewer than 20 new vehicles introduced this year, which will lead to even greater opportunities if we execute well,” Tavares said.

The list of new products that could improve second-half sales figures includes Europe’s Lancia Ypsilon and the Hurricane-powered Ram 1500. Stellantis will also cut prices to make its cars, trucks and SUVs more competitive, something dealers have been clamoring for.

But the former Renault driver admitted that getting out of trouble would not be easy.

“We still have a lot of work to do, particularly in North America, to maximize our long-term potential,” he said.

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