Stellantis unveils $70B turnaround plan
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A Jeep Moab EV on display at the Detroit Auto Show in January. Photo: Jim West/UCG/Universal Images Group via Getty Images
Stellantis plans to spend 60 billion euros ($70 billion) over the next five years, much of it in North America, to reinvigorate its vehicle brands and strengthen its financial performance.
Why it matters: It's a major strategy reboot for the sprawling automotive giant and its 14 brands, which has struggled to find its way in the hyper-competitive industry.
The big picture: The plan from new CEO Antonio Filosa targets faster product development, improved quality, $7 billion in annual cost reductions by 2028 and positive cash flow by 2027.
- It includes a plan to cut factory capacity in Europe, while "aiming to preserve manufacturing jobs."
- In the U.S. Stellantis plans to increase production, improving its factory capacity utilization to 80% by 2030.
Zoom in: Filosa's strategy includes 60 new vehicles, mostly based on three global platforms, and 50 significantly refreshed models.
- It includes 29 electric vehicles, 24 hybrids, 15 plug-in or range-extended hybrids and 39 traditional gas vehicles.
Stellantis also plans to lean heavily on partnerships to save technology investment and find growth.
- It's expanding its commercial collaboration with China's Leapmotor (51% owned by Stellantis), for example, by sharing factories in Europe and combining supply chains and purchasing.
- It's partnering with Dongfeng to produce Jeep and Peugeot models for China and creating a joint venture in Europe.
- In North America, it just announced a partnership with Jaguar Land Rover.
Four global brands — Jeep, Ram, Peugeot and Fiat — will receive 70% of the product investments, along with its new Pro One commercial vehicles business unit.
- Chrysler, Dodge, Citroen, Opel and Alfa Romeo will remain as regional brands, with DS and Lancia, will survive as specialty brands.
- Maserati, which is adding two electric luxury models, will remain as well, with more details to come, the company said.
- "Every brand in Stellantis will play a clear role in delivering our FaSTLAne 2030 commitments," said Filosa, referring to his five-year strategy.
What's next: Financial targets for the plan will be disclosed later Thursday in a meeting with investors.
