Stellantis CEO Carlos Tavares has revealed the details of the group’s electric vehicle strategy. “Our commitment in our €30 billion investment plan is also to deliver iconic vehicles with performance, capability, comfort and electric range that fit seamlessly into our customers’ daily lives,” said Tavares. Stellantis plans to increase profitability in the coming years. That’s €5 billion per year in steady state. The forecast of cash synergies on battery will be supported by the roadmap aimed at battery cost reduction and the execution of synergy opportunities arising from Stellantis’ layout, with continuous optimization of distribution and production costs, and new revenue streams, particularly from connected services and future software business models. It aims to achieve sustainable, double-digit Operating Income margins (by 2026), making the Company a benchmark for profitability in providing electric mobility to customers globally.
Market share target
Stellantis aims to be the market leader in low emission vehicles (LEV). By 2030, Stellantis’ low-emission passenger car range in Europe is targeted to consistently exceed 70 percent (10 percent above current industry assumptions for the overall market mix). In the United States, Stellantis’ low-emission (passenger car mix) for passenger cars and pickup trucks is expected to exceed 40 percent by 2030. To drive this strategy, Stellantis is committed to funding its operations, including through equity investments in joint ventures. It plans to invest more than €30 billion in electrification and software development by 2025. With all this investment, total capital expenditure and R&D expenditures aim to continue to be 30 percent more efficient in terms of revenues than industry-wide. While continuing its commitment to grow its vehicle leadership and strengthen its position in North America, it also aims to become the world leader in e-Commercial Automobiles.