- The investment aims to develop and produce more than 40 new products, focusing on decarbonization technologies and innovative business opportunities.
- Stellantis’ announcement reflects its commitment to regional growth and the realization of its Dare Forward 2030 carbon net zero objectives.
- Stellantis holds the top position in sales in both Brazil and South America, boasting market shares of 31.4% and 23.5%, respectively.
Stellantis, the parent company of Jeep and Ram, has announced its plan to invest $6.1 billion in Brazil over the next five years to bolster the production of flex-hybrid vehicles and gain a competitive edge in South America.
“This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here,” stated Stellantis CEO Carlos Tavares. “South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network, and our partners.”
The investment aims to support the launch of more than 40 new products in the next five years, along with the introduction of “new Bio-Hybrid technologies” and “innovative decarbonization technologies.” The initial rollout of new models is scheduled for the second half of 2024.
Stellantis’s investment aligns with its Dare Forward 2030 strategic plan, which includes commitments to invest over €50 billion in electrifying its fleet and achieving carbon neutrality by 2038.
Other automakers, including Volkswagen Group, General Motors, Hyundai Motor, and Toyota Motor, have also disclosed plans to invest billions of dollars in Brazil. These investments are driven by initiatives such as President Luiz Inácio Lula da Silva’s Green Mobility and Innovation program, which offers tax incentives for decarbonization efforts and sets new sustainability standards for vehicles.
BYD, China’s largest electric vehicle maker, is also expanding its presence in Brazil with a $620 million project to revamp an industrial complex formerly owned by Ford Motor Co.
“The automotive industry must enter clean mobility through accessibility. If the middle classes cannot buy, there is no volume and there is no positive impact on the planet,” remarked Tavares during a media briefing.
Stellantis’s ongoing investment cycle, which began in 2018 and concludes this year, has focused on launching 43 products across its eight brands in South America. Approximately 80% of Stellantis’s resources are concentrated in Brazil, where the company operates three factories.
Last year, Stellantis sold over 878,000 vehicles in South America, securing a market share of 23.5%. In Brazil alone, the company boasted a 31.4% market share, with 686,000 units sold.
About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders