01:30 PM EDT, 07/25/2024 (MT Newswires) -- Stellantis ( STLA ) is willing to scrap brands in its portfolio if they fail to be profitable, Reuters reported Thursday, quoting Chief Executive Carlos Tavares.

"We cannot afford to have brands that do not make money," Tavares was quoted as telling reporters after the company reported lower H1 adjusted earnings and revenue.

The company is also working on fixing its weak margins and high inventory at its US operations, Tavares reportedly said.

"We respect the fan base of our vehicles but there is no taboo. If they are not able to monetize the value they represent, then decisions will come. For the time being, with no exception, all of our brands are profitable. It's not by chance that we are a double-digit 10% adjusted operating income margin company, the only one to be double digits so far. It's because our brands are great. Our products are appealing," Stellantis ( STLA ) told MT Newswires in a statement.

Shares of Stellantis ( STLA ) were down 6.9% down in recent trading activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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