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Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says

  MILAN — Stellantis is taking steps to fix weak margins and high inventory at its U.S. operations and will not hesitate to axe underperforming brands in its sprawling portfolio, its chief executive Carlos Tavares said on Thursday. The warning for lossmaking brands is a turnaround for Tavares, who has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. "If they don't make money, we'll shut them down," Carlos Tavares told reporters after the world's No. 4 automaker delivered worse-than-expected first-half results, sending its shares down as much as 10%. "We cannot afford to have brands that do not make money." The automaker now also considers China's Leapmotor as its 15th brand, after it agreed to a broad cooperation with the group. Stellantis does not release figures for individual brands, except for Maserati which reported an 82 million euro adjusted operating loss in the first half. Some analysts say Maserati could possibly be a target for a sale by Stellantis, while other brands such as Lancia or DS might be at risk of being scrapped given their marginal contribution to the group's overall sales. Stellantis' Milan-listed shares were down as much as 12.5% on Thursday, hitting their lowest since August 2023. That brings the loss for the year so far to 22%, making them the worst performer among the major European automakers. Few automotive brands have been killed off since General Motors ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008. Tavares is under pressure to revive flagging margins and sales and cut inventory in the United States as Stellantis bets on the launch of 20 new models this year which it hopes will boost profitability. Recent poor results from global carmakers have heightened worries about a weakening outlook for sales across major markets such as the U.S., whilst they also juggle an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. Japan's Nissan Motor saw first-quarter profit almost completely wiped out on Thursday and slashed its annual outlook, as deep discounting in the United States shredded its margins. Tavares said he would be working through the summer with his U.S. team on how to improve performance and cut inventory.

From Maseratis to rental cars | Autoblog Podcast #511

On this week's podcast, Mike Austin and David Gluckman are in a huddle room (again), because the studio was already taken (again). We talk about the all-wheel-drive Dodge Challenger GT (again), as well as the Jeep Wrangler, Maserati Levante, Miata RF (again), and then David waxes poetic on mediocre rental cars (or similar). The episode wraps up with the traditional doling out of Spend My Money buying advice, with some input from an S2000 owner on advice discussed last time. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast at autoblog dot com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #511 Topics and stories we mention Dodge Challenger GT Jeep Wrangler Unlimited Maserati Levante Mazda MX-5 Miata RF Used cars! Rundown Intro - 00:00 What we're driving - 06:11 Spend My Money - 32:45 Total Duration: 55:30 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show on iTunes Podcasts Dodge Jeep Maserati Mazda Nissan mazda mx-5 rf dodge challenger gt

2017 Jeep Compass ads navigate life for Millennials

Jeep kicked off an advertising blitz Thursday for the 2017 Compass, pitching the attractive compact crossover directly at the Millennial generation. The first broadcast spot, called Recalculating, shows young people navigating life's changes, including marriage, children, job moves, and more. A narrator intones "recalculating" – like a GPS – at each life moment during the 60-second ad. Naturally, a Compass would be a logical ride for all of these milestones, Jeep suggests. "We expect its message of life's journey moving us in many directions to resonate with our Millennial audience while staying true to the Jeep brand's core value of freedom," Oliver Francois, Fiat Chrysler's chief marketing officer, said in a statement. The campaign will be shown during Saturday Night Live, Modern Family, and other popular television shows. Print versions will also appear in national magazines, and the campaign will include digital, cinema, and experiential elements. The blitz began in North America, but it will be a global marketing effort as the Compass is sold in a wide range of regions. The ads will be customized for local audiences. Four more 30-second spots are planned for launch in May. An FCA US spokesperson declined to provide a monetary value for the campaign. The Compass will also be a featured vehicle at the Bonnaroo Music & Arts Festival in June in Tennessee. Additionally, FCA US will showcase the vehicle outside its headquarters in Auburn Hills, Mich., with a multi-story wrap on the building (replacing the current Chrysler Pacifica hybrid wrap). The Compass, which is on sale now, is receiving positive reviews for its updated styling that echoes the Grand Cherokee, increased storage space, and off-road capability. Hawking the Compass toward the Millennial generation, which is young people in their 20s to mid-30s, is a logical move for Jeep, as the group is beginning to display increased buying power. The Compass is one of Jeep's entry points. Customers could then theoretically stay with the brand as they age and their families grow, moving up to larger and more expensive vehicles, a longtime strategy employed by automakers. Related Video: