Multinational automaker Stellantis has announced plans to produce electric vehicles in South America as part of a new €5.6 billion ($6.1 billion) investment within 5 years, according to the press release.
Investment details
Stellantis, which owns the Chrysler, Dodge, Fiat, Jeep, and Ram brands, will invest a total of €5.6 billion ($6.1 billion) investment from 2025 to 2030, marking the company’s biggest investment in Brazil and South America’s automotive industry to date.
Stellantis indicated that the investments will fund its planned rollout of more than 40 new electric vehicle models in the given timeline, along with the development of the following:
- New Bio-Hybrid technologies
- Innovative decarbonization technologies across the automotive supply chain
- Strategic new business opportunities
Primary benefits
Stellantis’ new investment commitment in South America will significantly solidify its dominant position in the region, which will also accelerate the growth of the local automotive industry.
“This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here. As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners.”
Stellantis CEO Carlos Tavares
Stellantis’ Dare Forward 2030
The fresh investment is a significant part of Stellantis’ efforts to complete its Dare Forward 2030 strategy. The multinational automaker announced plans to invest more than €50 billion to support its electric vehicle push in the next 10 years.
Stellantis also seeks to achieve carbon neutrality across its global operations by 2038, with only a single-digit percentage compensation of remaining emissions.
The company emphasized South America’s “leading role” in its “third engine” growth strategy, which consists of South America, the Middle East & Africa, and China and India & Asia Pacific segments. Therefore, it is a major contributor to the company’s increasing revenue goals beyond North America and Europe.
However, Stellantis has yet to reveal more information about the planned local battery-electric car production, such as which model and exact manufacturing site. In hindsight, Stellantis unveiled five electric vehicle concepts at the Geneva Motor Show, including a pickup truck.
