Jeep maker will plow $36 billion Into electrifying lineup
Stellantis NV plans to spend more than 30 billion euros ($36 billion) on an electrification and software strategy that will be pivotal for what’s become one of the world’s largest automakers.
The company formed from the merger of Fiat Chrysler and PSA Group intends to source 260 gigawatt-hours of EV batteries from five factories in Europe and North America by 2030. That’s a significant step up in capacity for a group chasing Tesla Inc. in the burgeoning business of electric vehicles.
The plans are part of Chief Executive Officer Carlos Tavares’s bid to bring together a sprawling empire of 14 auto brands and shift them to an electric future. The maker of Jeeps and Peugeots is following rivals Volkswagen AG, General Motors Co. and Ford Motor Co. in laying out multi billion-dollar plans to invest in EVs and battery factories.
Stellantis is pushing hard to electrify in Europe, where its Opel and Fiat brands will phase out gasoline cars over the coming years amid pressure from regulators to cut emissions. It’s less ambitious in the U.S., where Ram’s first all-electric truck will be released in 2024 — some years after rival models from Ford and GM.
Stellantis declined 4% as of 3:50 p.m. in Milan. The company’s shares are still up by more than a third this year.
Stellantis said it will build its third European battery factory in Italy, confirming an earlier report from Bloomberg. The company already had concrete plans for two battery plants in France and Germany.
Additional plans include:
- Plug-in hybrids and fully electric vehicles are to account for more than 70% of sales in Europe and more than 40% in the U.S. by 2030
- Develop battery-powered cars that can charge quickly and boast ranges of 300-500 miles
- By 2025, Jeep is to have a fully electric model for every SUV segment
- Generate a double-digit adjusted operating income margin by around 2026
The company earlier Thursday boasted stronger-than-expected earnings for the first half as the global chip shortage depleted vehicle inventories and drove up prices.
– By Tara Patel and Gabrielle Coppola (Bloomberg)
