Stellantis will make investments $ 35.5 billion in electrical autos and new applied sciences by 2025
The logo of Stellantis, the fourth largest automaker in the world, which starts trading in Milan and Paris after the merger of Fiat Chrysler and Peugeot manufacturer PSA, is on May 18.
Massimo Pinca | Reuters
Stellantis – the merged automaker of Fiat Chrysler and French automaker PSA Groupe – plans to invest at least $ 35.5 billion in electric vehicles and assistive technologies by 2025.
The world’s fourth largest automaker announced the plans on Thursday during an electrification strategy event. Stellantis announces tens of billions of dollars in electric vehicle investments with automakers including Volkswagen, General Motors and Ford Motor.
For the US in particular, Stellantis announced that it would offer an electric Dodge muscle car by 2024, and Jeep would offer an all-electric SUV in every vehicle segment by 2025, which would be at least two years behind American rivals Ford and GM.
Stellantis stock on the New York Stock Exchange fell about 3.5% to below $ 19 per share during early trading Thursday morning. The company’s market capitalization is approximately $ 30 billion.
Stellantis CEO Carlos Tavares said the company is in “full execution mode” of its vehicle electrification plans. He said Stellantis anticipates that more than 70% of sales in Europe and over 40% in the US will be low-emission vehicles, which could be both electric vehicles and hybrid electric models.
“Our electrification journey is probably the most important building block we need to lay as we begin to unveil the future of Stellantis,” Tavares said during the event.
Company executives said they are working on new EV platforms as well as technology to increase vehicle life, such as over-the-air or remote updates, as well as internal technologies for EVs.
The company plans to have five battery manufacturing facilities, which it calls Gigafactories, by 2030.
Stellantis CFO Richard Palmer said the company plans to achieve double-digit adjusted profit margins by around 2026.
Stellantis has 14 brands including Jeep, Ram, Opel, Fiat, Peugeot and Maserati. During the event, the company presented electrical plans for several of its brands. It was formed in January through a $ 52 billion merger between Fiat Chrysler and PSA Groupe.