(AOF) – Stellantis entered the capital of Vulcan for an amount of 50 million euros and extended the initial supply agreement with the mining group for 10 years. This investment is intended to support Vulcan’s planned production expansion from its brine deposit located in the Upper Rhine Valley in Germany. Vulcan, which already generates geothermal energy from this deposit, plans to produce lithium hydroxide without using fossil fuels and with a neutral carbon footprint as part of its Zero Carbon Lithium project.
“This highly strategic investment in a major lithium production company allows us to create a robust and sustainable value chain for the production of batteries for our electric vehicles in Europe,” said Carlos Tavares, CEO of Stellantis.
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Key points
– Sixth largest automobile group in the world – 4
th
American with 11% market share and 2
th
European with 20%, born in January 2021 from the Peugeot-Fiat Chrysler Group merger;
– Turnover of €162 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 to the electrification of vehicles via digital transformation, the internal culture of performance (high industrial competitiveness) and social responsibility;
– Capital with 4 main shareholders: the holding company of the Agnelli Exor family 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 board of directors of 11 members and Carlos Tavares being managing director;
– Healthy financial position: €64 billion in cash and €56 billion in equity, against a debt of €34 billion.
Challenges
– “Dare forward 2030” strategic plan: maintenance of a breakeven point at less than 50% of invoicing and operating margins of more than 2 figures / doubling of turnover, including a quadrupling in the high end, a a quarter realized outside Europe and North America (€20 billion in China) and a third from online sales / from 2024, $5 billion in cash from synergies;
– Innovation strategy: increase in battery capacity to 400 GWh / fuel cell/hydrogen combination for large utilities / new venture capital fund of 300 M€ for advanced technologies / strategic partnerships – Foxconn, Archerl, Engie , Mercedes-Benz, Total, Samsung and LG Energie- and academies in digital & data and electricity;
– Environmental strategy aiming for carbon neutrality in 2038 with a 50% reduction by 2030: 100% electric vehicles in Europe and 50% in the United States by 2030, i.e. a total of 5 million per year / new division circular economy / partnerships, in particular with Waymo (“Delivery as service” eco-responsible);
– Electrification and software plans with €30 billion in investments by 2025;
– Launch of battery factories in Canada and Italy.
Challenges
– Persistent shortages of semiconductors;
– Execution of synergies –€3.2 billion in net cash in 2021 out of €5 billion expected in 2024;
– Strengthening of financing activities in the United States and Europe;
– 2022 objective of a double-digit operating margin and positive free cash flow.
New giant in used cars
The market, which represents 400 billion euros in Europe, is subject to a movement of concentration. The British group Constellation has taken over the retail platform, CarNext. The objective is to form a European leader in the sector and to impose itself against other leaders such as the German AutoHero, the British Cazoo or the French Aramis Auto. Fundraising is accelerating. The British Cazoo has announced its listing on the New York Stock Exchange via a Spac (Special Purpose Acquisition Company) to raise $1.6 billion. The German Auto1 Group raised 1.8 billion euros on the Frankfurt Stock Exchange while the French Aramis Group, a subsidiary of Stellantis, entered the Paris Stock Exchange.