2006 Jeep Wrangler on 2040-cars

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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.

Final Toledo Jeep decision may have nothing to do with city's efforts

Toledo, OH is doing all that it can to keep production of the Jeep Wrangler in its boundaries, but the biggest issue facing the plant may be insurmountable, no matter how desperately the city wants to keep the Wrangler local. The Wrangler is built in a rather interesting manner at the Toledo Supplier Park: Fiat Chrysler only handles the very final assembly of each vehicle, while two other companies, Kuka, a German firm, and Hyundai-Mobis, a member of the sprawling Hyundai empire, produce the body and chassis, respectively. The vehicles are then transferred over to the FCA part of the park, where they're painted and completed. This was, as The Detroit News explains, a convenient arrangement back in 2006 when the supplier park opened. Chrysler, which was still owned by Daimler at the time, arranged for Kuka and Mobis to handle production, saving it a huge sum of money. Both suppliers own their own machinery and buildings and employ their own workers. Now that FCA is a relatively healthy entity, though, there's not a lot of need to be sharing profits with two other companies. "What [FCA boss Sergio Marchionne] would like is to have the advantages of high-capacity utilization, owning that capacity and taking advantage of that for himself versus having a supplier doing some of the things his competitors do internally," David Cole, chairman emeritus at the Ann Arbor, MI-based Center for Automotive Research, told The News. "It really adds another level of complexity to the situation." While Sergio Marchionne is a man that generally gets what he wants, it seems unlikely that either Mobis or Kuka would give up their role quietly. According to Jon Zapf, Mobis North America's chairperson for UAW Local 12, the company "definitely wants to maintain their part of this production process." According to The News, Jeep is likely to announce the location of next-generation Wrangler production in June. Expect to hear much more on this one in the coming months.

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: