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 closed on January 18, 2021 at the main entrance of the FCA Mirafiori plant in Turin, Italy see.
Massimo Pinca | Reuters
Stellantis – the merged automaker of Fiat Chrysler and French automaker PSA Groupe – plans to invest at least $ 35.5 billion (€ 30 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 joins automakers like Volkswagen, General Motors and Ford engine announcing tens of billions of dollars in electric vehicle investments.
The company expects 55 electrified vehicles in the US and Europe by 2025. These include 40 fully electric models and 15 plug-in hybrid electric vehicles. It’s a different strategy than other automakers like GM that have announced plans in order to finally only offer pure electric vehicles.
For the US in particular, Stellantis announced that it would offer an electric Dodge muscle car by 2024, and Jeep would offer a fully electric SUV in every vehicle segment by 2025, which would take it back at least two years American rival 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 $ 60 billion.
Stellantis CEO Carlos Tavares said the company is in “full execution mode” of its vehicle electrification plans. He said Stellantis expects more than 70% of sales in Europe and over 40% in the US to come from electric vehicles, or PHEVs, which combine electrical systems with internal combustion engines.
“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 through a $ 52 billion merger between Fiat Chrysler and PSA Groupe in January.
Correction: Stellantis’ market cap is around $ 60 billion. This amount was incorrectly stated in an earlier version of this article.