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Stellantis on Thursday announced a $70 billion turnaround plan aimed at refocusing the automaker on core brands, partnerships and leveraging the industry's strengths.
The investment spans five years and includes the production of 60 new models by 2030, including a mix of internal combustion engine, hybrid and fully electric vehicles.
The pivot marks a shift under the leadership of new CEO Antonio Filosa to more external partnerships for Stellantis – the parent company of brands such as Chrysler, The JeepDodge and Ram.
“This plan is based on reality,” Filosa told investors on the company's stock market day. “It is designed to create an environment for profitable and sustainable growth.”
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Stellantis CEO Antonio Filosa has launched a plan to change this giant of the automotive industry. (Elisa Marchina/NurPhoto via Getty Images)
Stellantis' new partnership includes combining manufacturing with Chinese companies Leapmotor and Dongfeng, and a partnership with Tata Motors and its US unit JLR.
That partnership will allow Stellantis to use some of its surplus productive capacity generating revenue through outsourced contract manufacturing instead of unused plants sitting idle and accumulating costs.
Strategic change includes technical relations with Qualcomm, Applied Intuition and self-driving startup Wayve. This approach will allow the company to share costs with partners while accelerating development in areas such as software and autonomous driving.
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| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| STLA | STELLANTIS NV share price | 7.56 | +0.04 |
+0.47% |
Filosa also unveiled a new hierarchical structure for Stellantis' 14 brands that will affect how product investments are managed.
Stellantis will concentrate about 70%. brand and brand investment at Jeep, Ram, Peugeot and Fiat, as well as its Pro One division that makes commercial vehicles.
Brands such as Chrysler and Alfa Romeo will be repositioned to focus more on the region, while Lancia and DS will shift into specialized roles under Fiat and Citroen.
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Jeep is one of the key brands in the Stellantis portfolio. (Plexi Images/GHI/UCG/Universal Images Group via Getty Images)
The product focus at Stellantis will be multi-variety affordable cars which may support volume growth over profit.
Stellantis said it plans to invest more than $27 billion in its platforms, powertrains and technology, and aims to reduce about $7 billion in annual costs by 2028 compared to the previous year.
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The automaker's shares were slightly higher, up 0.2% as of Thursday afternoon, and rebounded after the stock opened the day in the red. Shares of Stellantis are down about 34% year to date and more than 28% over the past year.
Reuters contributed to this report.
