Stellantis makes a 30 billion euro bet on the electric vehicle market

MILAN, July 8 (Reuters) – Stellantis (STLA.MI), the world’s fourth largest car maker, on Thursday announced plans to invest more than 30 billion euros ($ 35.54 billion) by 2025 for electrify its range of vehicles.

The company, which was formed in January from the merger of Italian-American automaker Fiat Chrysler and French PSA, said its strategy will be supported by five battery factories in Europe and North America as it prepares. to compete with the leader in electric vehicles (EV). Tesla (TSLA.O) and other automakers around the world.

“This period of transformation is a wonderful opportunity to reset the clock and start a new race,” Stellantis general manager Carlos Tavares said on a webcast. “The group is at full speed on their electrification journey.”

Stellantis said on its “EV Day 2021” that it is targeting over 70% of sales in Europe and over 40% in the United States to be low-emission vehicles – battery or hybrid electric – by 2030 .

It said its 14 vehicle brands – including Peugeot, Jeep, Ram, Fiat and Opel – will offer fully electrified vehicles.

Stellantis said Thursday that one of the five battery factories will be located at its engine factory in Termoli, Italy, joining previously announced factories in Germany and France. The automaker has also announced that it will be putting one in the United States.

At a similar EV strategy event last week, its French rival Renault (RENA.PA) said that 90% of its main brand models will be fully electric by 2030, whereas previously it had included the hybrids in its lens. Read more

Germany’s Volkswagen (VOWG_p.DE), the world’s second-largest automaker after Toyota (7203.T), expects all-electric vehicles to account for 55% of its total sales in Europe by 2030, and more than 70 % of sales to its Volkswagen brand. Read more

General Motors Co (GM.N) announced last month that it plans to spend $ 35 billion through 2025 on electric and autonomous vehicles. It has set itself the goal of selling all new cars and light trucks with zero exhaust emissions by 2035. read more

Earlier, Stellantis reported that 2021 had a better-than-expected start despite a global shortage of semiconductor chips.

Stellantis said its adjusted operating profit margins in the first half of 2021 are expected to exceed an annual target of between 5.5% and 7.5%, despite production losses due to the semiconductor supply crisis. conductors.

He said the synergies from his merger were on track to exceed the first year target and would help contribute to positive cash flow for the full year. Stellantis has pledged more than 5 billion euros ($ 5.9 billion) in annual synergies.

Stellantis shares fell more than 3% in Milan, in line with a sharp decline in European equity markets.

($ 1 = 0.8442 euros)

Additional reporting by Clément Martinot and Ben Klayman in Detroit; Editing by Agnieszka Flak, David Clarke and Paul Simao

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