The Associated PressJuly 9, 2021 11:32:45 AM IST
Stellantis is a bit late for the global EV festival, but on Thursday he vowed to catch up and outperform his competitors. CEO Carlos Tavares says that by 2025, 98 percent of its models in Europe and North America will have fully electric or plug-in hybrid gas-electric versions. He says the company that combined Fiat Chrysler and Peugeot is developing four fully electric vehicle platforms with ranges of 500 kilometers to 800 kilometers.
It will also have three electric drive modules to power all of its vehicles, and Stellantis will take advantage of its scale to reduce the costs of electric vehicles. The company expects to reduce battery costs by more than 40 percent from 2020 to 2024 with two new battery chemistries. It plans to introduce solid-state battery technology by 2026 that can store more energy than current versions.
Models include an all-electric Ram pickup in 2024 and a hybrid Jeep Grand Cherokee later this year, as well as small cars. There will even be an electric Dodge muscle car. The company says it will use its expertise in electric commercial vehicles from Europe to build electric vehicle models around the world. It says Jeeps, largely known for being off-roading, will have zero-emission electric vehicles in all market segments by 2025.
Tavares says Stellantis will spend no less than € 30 billion ($ 35.6 billion) over the next five years on electric vehicles. It will build five battery factories in the United States and Europe. By 2030, 70 percent of sales in Europe and 40 percent of sales in the United States will be all-electric or plug-in. he said.
“We’re already in the race,” Tavares said during a 2.5-hour electric vehicle day presentation via transatlantic webcast on Thursday. “We are in a continuous start and now we are accelerating at full speed.”
This year, he said the company will have between 30 and 40 battery-electric and plug-in hybrid vehicles for sale globally through its 14 brands. Most of it is in Europe, and there are currently no fully electric vehicles for sale in the US, the world’s second-largest market.
Of the fully electric and hybrid vehicles, no less than 80 percent of them will run on batteries alone, Tavares said.
Stellantis says that the Opel brand will go fully electric in Europe by 2028, and that 100 percent of its vehicles in China will be electric. It will bring back the sporty Manta with an all-electric version in the mid-decade.
Tavares said Stellantis would convert plants that now make internal combustion engines and transmissions into battery cell factories. Of the five battery plants, three will be in Europe, including the conversion of the Termoli plant in Italy.
The company said its pre-tax operating profit margin for the first six months of this year would exceed the previous guidance of 5.5 percent to 7.5 percent, due to higher vehicle prices and despite lower sales due to cutbacks. of production. Stellantis and nearly every major automaker in the world have had to cut production due to shortages of computer chips. It also expects negative cash flow in the first half due to capex and lower production.
Tavares expects sustained double-digit operating profit margins around 2026 and says the synergies should reduce the costs of electric vehicles to those of internal combustion vehicles, even without government incentives.