- Plans to spend EUR30bn through 2025 in electrification and software, investment efficiency claimed 30% better than industry average
- Target of over 70% of sales in Europe and over 40% in the US to be LEV by 2030
- All 14 brands committed to “offering best-in-class fully electrified vehicles
- Delivering BEVs that meet demands of customers, with ranges of 300-500 miles/500-800 km and “class-leading fast charging” capability of 20 miles/32 km per minute
- Four flexible BEV-by-design platforms, scalable family of three electric drive modules and standardised battery packs to cover all brands and segments
- Platforms designed for long life via software and hardware upgrades
- Global EV battery sourcing strategy of over 260GWh by 2030, supported by five gigafactories between Europe and North America
- Plans include dual battery chemistries: a high energy-density option and a nickel cobalt-free alternative by 2024
- Solid state battery technology introduction planned in 2026
Stellantis said a brand-wide electrification strategy would allow the automaker “to target sustainable, double-digit adjusted operating income margins in the mid-term”.
CEO Carlos Tavares said: “The strategy we laid out today focuses the right amount of investment on the right technology to reach the market at the right time.”
Financial Performance
Stellantis plans to achieve increased profitability in the coming years. This will be supported by execution of synergy opportunities arising from the formation of the merged company with a forecast of annual cash synergy of EUR5bn, the battery cost reduction plan, and the “continued optimisation of distribution and production costs and realisation of new revenue streams, in particular from connected services and future software business models”.
Stellantis plans to become the market leader in low emission vehicles (LEV). Through 2030, Its LEV mix for passenger cars in Europe is targeted to steadily grow to over 70% – 10% ahead of current industry assumptions for overall market mix.
In the US, LEV mix for passenger cars and light-duty trucks is expected to be more than 40% by 2030.
The automaker will spend EUR30bn through 2025 on electrification and software development, including equity investments made in joint ventures while targeting to continue to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.
It plns to continue growing its commercial vehicle leadership in Europe and strengthening its position in North America while aiming to be the global leader in e-commercial vehicles.
The CV electrification rollout will extend to all products and all regions over the next three years, including the delivery of hydrogen fuel cell medium vans by the end of 2021.
The EV battery sourcing strategy is to secure 130 gigawatt hours (GWh) of capacity by 2025 and 260 GWh by 2030. The EV battery and component needs will be met by five gigafactories in Europe and North America, completed with additional supply contracts and partnerships to support total demand.
Stellantis has signed MOUs with two lithium geothermal brine process partners in North America and Europe to ensure a sustainable supply of lithium, identified as the most critical battery raw material with regard to availability, as well as to have the ability to integrate lithium into the supply chain once available.
EV battery pack costs are targeted to be reduced by 40% from 2020 to 2024 and by an additional 20% by 2030.
The company intends to maximise the full value of the battery life cycle through repair, remanufacturing, second-life use and recycling.
Customer Focused
Affordability is a priority so the automaker is targeting for the total cost of ownership of EVs to be equivalent to internal combustion engine vehicles by 2026.
Stellantis revealed “statements expressing each of the brand’s electrification approach:
- Abarth – “Heating Up People, But Not the Planet”
- Alfa Romeo – “From 2024, Alfa Becomes Alfa e-Romeo”
- Chrysler – “Clean Technology for a New Generation of Families”
- Citroën – “Citroën Electric: Well-Being for All!”
- Dodge – “Tear Up the Streets… Not the Planet”
- DS Automobiles – “The Art of Travel, Magnified”
- Fiat – “It’s Only Green When It’s Green for All”
- Jeep® – “Zero Emission Freedom”
- Lancia – “The Most Elegant Way to Protect the Planet”
- Maserati – “The Best in Performance Luxury, Electrified”
- Peugeot – “Turning Sustainable Mobility into Quality Time”
- Ram – “Built to Serve a Sustainable Planet”
- Vauxhall/Opel – “Green is the New Cool”
- Commercial Vehicles – “The Global Leader in e-Commercial Vehicles”
Driving range and rapid recharges are key to widespread consumer acceptance of BEVs. Stellantis said it would meet this challenge with BEVs that will deliver ranges between 300-500 miles/500-800 km and with class-leading fast charging capability of 20 miles/32 km per minute.
New products will include providing smart charging offers using green energy sources, tapping into existing partnerships to expand charging options and accelerating smart grid use.
The company will support the development of fast charging networks across Europe, enabled by a memorandum of understanding (MOU) signed between Free2Move eSolutions and Engie EPS. The intention is to mimic Free2Move eSolutions’ business model for the North American market.
Smart Technology Enablers
Four BEV-centric platforms are the backbone of the electrified vehicles from Stellantis brands. The platforms are designed with a high level of flexibility (both in length and width) and component sharing, delivering economies of scale as each platform can support production of up to 2m units per year.
The four platforms are:
- STLA Small – range up to 300 miles/500 kilometres
- STLA Medium – range up to 440 miles/700 kilometres
- STLA Large – range up to 500 miles/800 kilometres
- STLA Frame – range up to 500 miles/800 kilometres
Propulsion includes a family of three electric drive modules (EDM) that combine the motor, gearbox and inverter. These EDMs are compact, flexible and can be easily scaled. The EDMs can be configured for front-drive, rear-drive, all-wheel drive and 4xe.
The combination of the platforms, EDMs and high energy-density battery packs will deliver vehicles with best-in-class performance in efficiency, range and recharging, Stellantis claims.
A program of hardware upgrades and over-the-air software updates will extend the life of the platforms well into the next decade. The automaker will develop software and controls in-house to maintain the characteristics unique to each brand.
Battery packs will be tailored for a variety of vehicles.
Use of two battery chemistries is planned by 2024: a high energy-density option and a nickel cobalt-free alternative. By 2026, the first competitive solid state battery technology is targeted to be introduced.
Stellantis currently has or is completing several key technology joint ventures, ranging from e-powertrain and e-transmission operations to battery cell chemistry and production and digital cockpit and personalised connected services.
“Our electrification journey is quite possibly the most important brick to lay as we start to reveal the future of Stellantis just six months after its birth, and now the entire company is in full execution mode to exceed every customer’s expectations and accelerate our role in redefining the way the world moves,” added Tavares.
“We have the scale, the skills, the spirit and the sustainability to achieve double-digit adjusted operating income margins, lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”