Stellantis unveils $70B turnaround strategy with 60 new models

Stellantis on Thursday announced a $70 billion turnaround strategy that aims to refocus the automaker on core brands, partnerships and more efficient use of factory capacity.

The investment is over five years and includes the production of 60 new models by 2030, including a mix of internal combustion engine, hybrid and fully electric vehicles.

The pivot marks a shift under the leadership of new CEO Antonio Filosa to more external partnerships for Stellantis – the parent company of brands such as Chrysler, Jeep, Dodge and Ram.

“The plan is grounded in reality,” Filosa told investors at the company’s capital markets day. “It is designed to create a condition for profitable and sustainable growth.”

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New partnerships for Stellantis include production tie-ups with Chinese firms Leapmotor and Dongfeng, as well as cooperation with Tata Motors and its U.S. unit JLR. 

Those partnerships will allow Stellantis to utilize some of its excess manufacturing capacity to generate revenue through contract production by third-parties instead of unused plants sitting idle and accumulating costs.

The strategic shift also includes technology partnerships with Qualcomm, Applied Intuition and self-driving startup Wayve. The approach will allow the company to share costs with partners while accelerating development in areas like software and autonomous driving.

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Filosa also outlined a new hierarchical structure for Stellantis’ 14 brands that will affect how product investment is directed.

Stellantis will focus about 70% of brand and product investment on Jeep, Ram, Peugeot and Fiat, as well as its Pro One division that makes commercial vehicles.

Brands like Chrysler and Alfa Romeo will be repositioned to have more of a regional focus, while Lancia and DS will shift into specialized roles under Fiat and Citroen.

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The product focus at Stellantis will focus on a range of more affordable vehicles that can support volume growth in addition to profitability.

Stellantis said it’s planning to invest over $27 billion in its platforms, powertrains and technologies, while it’s aiming to cut nearly $7 billion in annual costs by 2028 compared with a year ago.

Shares in the automaker were up slightly with prices up 0.2% as of early afternoon Thursday, rebounding after the stock opened the day in the red. Stellantis shares are down nearly 34% year to date and over 28% in the last year.

Reuters contributed to this report.