Faced with declining financial results in the first half of 2024, the Stellantis Group announces adjustment measures, while reaffirming its support for its luxury brand Maserati. Group CEO Carlos Tavares dismisses rumors of a sale or merger of the trident brand.
A difficult first half of 2024 for Stellantis
Automotive giant Stellantis is going through a tricky period, with figures down sharply for the first half of 2024 :
- The net profit fell by nearly 50%.to 5.6 billion euros.
- Operating margin fell below 10%, below target.
- In North America, a key market for the Group, operating sales fell by 18%..
Carlos Tavares, Chairman of Stellantis, acknowledged that this performance “did not meet expectations”. This worrying situation calls for rapid corrective action.
Adjustment strategy in the United States
To turn things around, Stellantis intends to focus primarily on the North American market:
- Inventory reduction of available vehicles to better balance supply and demand.
- Lower prices on certain models to stimulate sales.
- Launch of strategic new models such as the Dodge Charger electric and the RAM 1500 renewed.
Natalia Knight, the Group’s CFO, stressed that these measures are aimed at “calibrating supply and demand” in this crucial market.
Cost-cutting plan
At the same time, Stellantis plans to implement an extensive cost-cutting plan:
- Reduction of logistics costs by 25%..
- Possible downward revision of executive remuneration, a sensitive subject as Carlos Tavares’ annual salary (36.5 million euros) has already come in for criticism from shareholders.
Maserati’s future in question
In this difficult context, the future of some of the Group’s brands, notably Maserati, has been the subject of speculation:
- The Italian luxury brand recorded a loss of 82 million euros for the first six months of the year.
- Deliveries fell to just 6,500 units over the period.
These alarming figures have fuelled rumours of a sale or merger of Maserati with other Italian luxury groups. Some analysts have even raised the possibility of Stellantis spinning off less profitable brands such as Lancia and DS.
Stellantis reaffirms its support for Maserati
Faced with this speculation, Carlos Tavares was keen to clarify the Group’s position:
- He has reaffirmed the company’s “unwavering commitment to Maserati.
- The CEO emphasized Maserati’s unique status as “the only luxury brand among Stellantis’ 14 brands”.
- Any idea of selling or merging Maserati was categorically ruled out.
This firm stance is intended to reassure investors and reaffirm the Group’s long-term strategy in the luxury car segment.
Outlook for the future
Despite these difficulties, Stellantis remains on course with its transformation strategy:
- Continued investment in the electrification of its range.
- Development of new models to boost sales in key markets.
- Optimization of cost structure to improve overall profitability.
The reaffirmed support for Maserati is part of this long-term vision, banking on the diversity of the Group’s brands to cover all segments of the automotive market.
Stellantis’ situation in the first half of 2024 illustrates the challenges facing major automotive groups in a context of energy transition and economic tensions. The Group’s ability to rapidly turn around its financial performance while pursuing its transformation will be closely scrutinized by investors and analysts in the months ahead.
