Stellantis plans to build electric cars in South America

The multi-brand group Stellantis is planning record investments in the South America region. It wants to spend 5.6 billion euros there from 2025 to 2030. Among other things, Stellantis wants to produce a battery-electric vehicle in the region.

Image: Stellantis

The investments will flow into more than 40 new products, the development and production of decarbonisation technology and the “development of new business opportunities”, according to Stellantis. By decarbonisation technology, the car manufacturer is referring to a “new type of bio-hybrid technology” as well as measures throughout the entire vehicle supply chain. In South America, combustion cars that can run on both petrol and plant-based ethanol are also widespread. The Stellantis plant in Betim (Brazil) is the Group’s global competence centre for bio-hybrid technologies, which is why the projects from the current investment will be located there – the technologies “include Bio-Hybrid, Bio-Hybrid electrified dual-clutch transmissions (eDCT), Bio-Hybrid Plug-In, and BEV (100% electric)”.

However, part of the billion-euro plan also includes the production of a battery-electric car on-site. A specific plant or even model is not yet mentioned in the press release. However, a reference to the vehicle could come from Stellantis itself: At the end of February, the Fiat brand presented five electric concept cars at the Geneva Motor Show. These included a pickup truck. Many people are not aware that Fiat has a widely used model in South America in the form of the Strada pickup. An electric version of the South American bestseller would therefore be an obvious choice in view of the latest announcement.

In the press release on the South American plans, Stellantis did publish images of some cutaway models, including the battery-electric vehicle. However, apart from the position of the high-voltage battery in the underbody and the drive on the front axle, these images reveal little about the potential body of the vehicle.

In 2023, Stellantis sold 878,000 vehicles in the region and is one of the market leaders in countries such as Brazil, Argentina and Chile. In Brazil, Stellantis achieved a market share of 31.4 per cent, with 28.6 per cent of all light commercial vehicles in South America coming from the Group.

“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,” said Stellantis CEO Carlos Tavares. “As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners.”

There is also news from China: according to insiders, the planned joint venture between Stellantis and Leapmotor to produce and sell electric cars outside China has been given the green light by the Chinese government. However, official authorisations in other markets are still pending – as well as official confirmation from China.

stellantis.com, reuters.com

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