(AOF) – Stellantis announces an investment plan for the South America region, totaling 5.6 billion euros between 2025 and 2030, which would be the largest investment in the history of the Brazilian and South American automotive sector. The planned investments will support the launch of more than 40 new products during this period, as well as the development of new bio-hybrid technologies and decarbonization technologies within the automotive supply chain. Stellantis is the leader in Brazil and South America, with 31.4% and 23.5% of the market respectively.
One of the beneficiaries of this investment is its bio-hybrid technology, which combines electrification and hybrid engines powered by biofuels (ethanol).
South America plays a leading role in the “third engine”, which includes South America, the Middle East & Africa region, China, India and Asia-Pacific, and contributes significantly to the growth in Stellantis’ sales outside North America and Europe.
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Key points
– Sixth largest automobile group in the world – 3rd American with 11% market share and 2nd European with 18%, born in January 2021 from the Peugeot-Fiat Chrysler Group merger;
– Turnover of €179.6 billion achieved under 14 brands – Alfa Romeo, Chrysler Citroën, DS, Jeep, Opel, Peugeot, etc. -, mainly in North and South America and in Europe;
– Business model adapting the group to the new uses of motorists and the electrification of vehicles (global positions in electric vehicles) via digital transformation, internal culture of performance (high industrial competitiveness) and social responsibility;
– Capital with 4 main shareholders: the Agnelli family holding company Exor for 14.4%, the Peugeot family for 7.2%, the Chinese Dongfeng for 5.6% and BPI France for 5.66%, John Elkann chairing the 11-member board of directors with Carlos Tavares serving as general manager;
– Healthy financial situation: €61.3 billion in available industrial liquidity and €61.3 billion in equity, compared to a debt of €34 billion.
Challenges
“Dare forward 2030” strategic plan:
– maintaining a balance point of less than 50% of billings and operating margins of more than 2 figures,
– doubling of revenues including a quadrupling in the high end, ¼ generated outside Europe and North America (€20 billion in China) and 1/3 derived from online sales,
– software strategy of 20 billion turnover and around 40% gross margin;
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Innovation strategy based on 4 pillars:
– electrification: 100% electric vehicles (BEV) sold in Europe and 50% in the United States in 2030
– hydrogen fuel cells: increase in battery capacity to 400 GWh,
– intelligent vehicles: more than 30 billion euros by 2025 in software and electrification, with deployment from 2024 of 3 platforms powered by artificial intelligence on the 4 future vehicle platforms,
– autonomous driving: participation in the European L3 Pilot t Hi_Drive projects,
– organized into a collaborative ecosystem, with more than 160 co-financed projects and more than 1,000 partners, academies in digital & data and electricity, 8 dedicated hubs and a €300 million venture capital fund for cutting-edge technologies ;
– Environmental strategy of carbon neutrality in 2038 via a 50% reduction in 2030 vs 2021:
– new circular economy division targeting €2 billion in turnover in 2030,
– specialized investments – “sustainable” Los Azules copper mine in Argentina, geothermal energy for German sites, etc.,
– Integration of the Share now specialist -5 million customers worldwide;
– Securing the battery ecosystem: 5 giga-companies in Europe and the United States and vertical integration of raw materials.
Challenges
– Confirmation of the resumption of semiconductor supplies;
– Spin-off of the strategic partnership with Archer in the production of electric vertical take-off and landing (eVTOL) aircraft;
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Advances in financing activities in the United States and Europe, with high profitability, and continued strong growth in global sales of electric vehicles, reinforced by 9 launches in 2023;
– After a 14% increase in revenues on 1
er
quarter, confirmation of the 2022 objective of a 2-digit operating margin and positive free cash flow.
– 2022 dividend of €1.34 and share buyback for €1.5 billion. .
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A French market in good shape
The French automobile market recorded its tenth consecutive month of growth in October 2023 with 152,383 registrations of new passenger vehicles (+22% year-on-year). It increased by 16.49% over the first 10 months of 2023, with 1.44 million registrations, almost as many as in 2022 (1.52 million) but much less than the level of 2019 (2.2 million ). However, the forecast indicators are not good because new orders fell by 13% at the end of September 2023. The slowdown in orders could be explained by inflation, the rise in interest rates, and more prudent management of their cash flow by companies (half of the market). If Stellantis (Peugeot, Citroën, Fiat, Opel, Jeep) remains the leader of the French market, with a market share greater than 28%, the Renault group (Renault, Dacia, Alpine) benefited from good performances in October 2023, with almost 31% additional new registrations over one year. The French group represents 24.6% of the private car market.