Stellantis presented a comprehensive electrification strategy for the company's iconic brands, while leveraging in-house expertise, partnerships and joint ventures to deliver advanced technology at affordable prices. This strategy will allow the company to target sustainable, double-digit adjusted operating income margins in the mid-term. To execute this strategy, Stellantis plans to invest more than 30 billion euro through 2025 in electrification and software development, including equity investments made in joint ventures to fund their activities, while targeting to continue to be 30 per cent more efficient than the industry with respect to total Capex and R&D spend versus revenues.
"The customer is always at the heart of Stellantis and our commitment with this EUR 30 billion plus investment plan is to offer iconic vehicles that have the performance, capability, style, comfort and electric range that fit seamlessly into their daily lives," said Carlos Tavares, Chief Executive Officer, Stellantis.
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Stellantis plans to achieve increased profitability in the coming years. This will be supported by the execution of the synergy opportunities arising from the formation of Stellantis, with a forecast of annual cash synergies of more than 5 billion euro at steady state, the roadmap of battery cost reductions, and the continued optimization of distribution and production costs and realization of new revenue streams, in particular from connected services and future software business models.
As a result, Stellantis is targeting to achieve sustainable, double-digit adjusted operating income margins in the mid-term (~2026), making the company a benchmark in profitability in the provision of electrified mobility to customers on a global basis.
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Stellantis intends to become the market leader in low-emission vehicles (LEVs). Through 2030, Stellantis' LEV mix for passenger cars in Europe is targeted to steadily grow to over 70% - 10 percentage points ahead of current industry assumptions for overall market mix. In the U.S., Stellantis' LEV mix for passenger cars and light-duty trucks is expected to be more than 40% by 2030..
Through 2030, Stellantis' Low Emission Vehicles (LEV) mix of passenger cars in Europe is targeted to steadily grow to over 70%
The company remains committed to 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. Leveraging knowledge and embracing synergies, the commercial vehicle 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 Stellantis electrification roadmap encompasses the entire value chain. The company's EV battery sourcing strategy is to secure more than 130 gigawatt hours (GWh) of capacity by 2025 and more than 260 GWh by 2030. The EV battery and component needs will be met with a total of five "gigafactories" in Europe and North America, completed with additional supply contracts and partnerships to support total demand.
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Stellantis has signed memorandums of understanding (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 have the ability to integrate lithium into the supply chain once available.
Stellantis has signed memorandums of understanding (MOUs) with two lithium geothermal brine process partners in North America and Europe
In addition to sourcing strategies, Stellantis' technical expertise and manufacturing synergies will drive battery costs lower. Electric vehicle battery pack costs are targeted to be reduced by more than 40% from 2020 to 2024 and by more than an additional 20% by 2030. All aspects of the battery pack play a role in reducing the costs - optimizing the overall pack, simplifying the format of the modules, increasing the size of the battery cells and upgrading the battery chemistry.
The company intends to maximize the full value of the battery life cycle through repair, remanufacturing, second-life use and recycling, as well as ensure a sustainable system that prioritizes customer needs and environmental concerns. Affordability is a priority at Stellantis, as the company is targeting for the total cost of ownership of EVs to be equivalent to internal combustion engine vehicles by 2026.
