Stellantis Announces $70 Billion Strategy With 60 New Car Models by 2030
Stellantis Unveils Ambitious Business Plan and Investment Strategy
Overview of the $70 Billion Business Plan
AUBURN HILLS, Michigan, May 21 (Reuters) - Stellantis set out a new 60 billion euro ($70 billion) business plan on Thursday that includes 60 new car models by 2030 - from combustion engine to fully electric vehicles - new investments in technology, joint ventures with other carmakers and better use of its manufacturing capacity.
Brand Portfolio Focus
Key Brands and Investment Allocation
The Franco-Italian carmaker said it would also refocus its approach to its sprawling 14-brand portfolio, with 70% of brand and product investments going to Jeep, Ram, Peugeot and Fiat, as well as commercial vehicle unit Pro One due.
Leadership and Strategic Shift
CEO Antonio Filosa's Vision
CEO Antonio Filosa will pitch the strategy later on Thursday to investors at the group's capital markets day on Auburn Hills, Michigan, marking a major shift in the carmaker's strategy.
Turning Challenges into Opportunities
Contract Manufacturing for Global Partners
The world's No. 4 automaker seeks to turn its structural disadvantage of having far too much unused factory capacity into a revenue-generating contract manufacturing business for Chinese automakers in Europe and other carmakers like Tata Motors unit JLR in the United States.
Focus on Profitable Brands and Outsourcing Technology
Unlike his predecessor Carlos Tavares who left the automaker's sprawling portfolio of 14 brands largely untouched and spent heavily to develop new tech, Filosa has shown a willingness to focus on the company's money-making brands and outsource expensive technology development to firms like self-driving startup Wayve.
Financial Targets and Market Goals
Investment and Cost-Cutting Initiatives
As part of its new plan, Stellantis has earmarked 24 billion euros for investments in global platforms, powertrains and new technologies, while targeting 6 billion euros in annual cost cuts by 2028 versus its outlays in 2025.
Revenue and Margin Projections
North American Market
The company also said it is targeting 25% revenue growth by 2030 in its key North American market, with a margin on its adjusted operating income (AOI) seen between 8-10%.
European Market
For Europe, its other key market, revenue is expected to grow 15% over the plan period, with an AOI margin seen between 3-5%.
($1 = 0.8615 euros)
(Reporting by Nora Eckert in Auburn Hills, Giulio Piovaccari in Milan and Gilles Guillaume in Paris; writing by Giulio Piovaccari; Editing by Susan Fenton)
