Maserati future under Stellantis in doubt

Stellantis-owned sports-luxury car-maker Maserati faces an uncertain future after reportedly posting an operating loss of more than €82 million ($A135m) in the first half of 2024.

Speaking to news agency Reuters, Stellantis chief executive Carlos Tavares confirmed the car-making giant was taking steps to fix both weak margins and high inventory at its US operations and would not hesitate to axe underperforming brands that contributed to its income falling by 40 per cent to €8.5 billion ($A14b) in the first half of this year.

Stellantis remains the world’s fourth-largest car-maker with 14 brands in its stable – Maserati, Fiat, Peugeot, Citroen and Jeep among them.

It was formed in 2021 with the merger of France’s PSA Group and Italian-American conglomerate Fiat Chrysler Automobiles (FCA).

In a bullish statement to reporters following the results, Tavares said: “If they don’t make money, we’ll shut them down.

“We cannot afford to have brands that do not make money,” he added.

Analysts are predicting Maserati could be quickly sold-off by Tavares, while France’s DS brand and Italy’s recently reborn Lancia are also under scrutiny in light of their marginal contribution to the group’s financial performance.

Motivating a fast response to appease investors, Stellantis shares dropped by around 12.5 per cent with the news.

In the US, Tavares is reportedly betting that the launch of 20 new models this year will bring much-needed profits.

Part of the blame for the 18 per cent slump in North American sales is attributed to the company’s decision to discontinue the Dodge Charger and Challenger and the Jeep Renegade and Cherokee, plus the changeover to the new facelifted RAM 1500 pick-up.

Stellantis will cuts its inventory in the coming months to boost margins that are currently less than 10 per cent, with Tavares aiming for double-digit margins for the remainder of 2024.

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