Stellantis to be carbon neutral by 2038, double net revenues by 2030

Breana Noble
The Detroit News

The maker of Jeep SUVs and Ram pickup trucks on Tuesday said it will become carbon neutral starting by 2038 and double its net revenues by 2030.

The CEO of Stellantis NV, the merger between Fiat Chrysler Automobiles NV and French automaker Groupe PSA, laid out the company's 2030 long-term strategy to achieve $335 billion (300 billion euro) in net annual revenue. The plan covers a critical time in the auto industry's transformation toward electrified and connected vehicles.

Stellantis CEO Carlos Tavares

“Dare Forward 2030 inspires us to become so much more than we’ve ever been," CEO Carlos Tavares said in a statement. "We are expanding our vision, breaking the limits and embracing a new mindset, one that seeks to transform all facets of mobility for the betterment of our families, communities and the societies in which we operate."

The strategy accelerates Stellantis' commitments even from the electrification plans it shared last summer. By 2030, 50% of U.S. sales will be electrified, up from 40%, with 25 available battery electric vehicles and 100% of sales in Europe will be electrified, up from 70%. Stellantis anticipates having 400 gigawatt hours of vehicle battery capacities by then, up 140 gigawatt hours.

Stellantis teased the first-ever battery electric Jeep, which is set to launch early next year.

Rival General Motors Co. has said it wants to end the sale of gas- and diesel-powered vehicles by 2035. An Dearborn-based Ford Motor Co. has pledged to do so by 2040.

Stellantis said it will reduce emissions by 50% from 2021 levels by 2030. Its efforts to carbon neutral will be "well to wheel," Tavares said, and include the supply chain.

In North America, Stellantis is seeking to become a leader in commercial vehicles, battery electric vehicles and light-duty trucks, despite plans to launch the Ram 1500 EV in 2024, after competitors. The automaker's goal is a more than 13% market share and to maintain an adjusted operating income of more than 15%.

Especially important is the transatlantic automaker's plans for China, the world's largest auto market where Stellantis' brands claim a roughly 0.5% share. Stellantis is targeting $22 billion (20 billion euro) in net revenue in China and a more than 8% adjusted operating income margin.

It will continue its two joint ventures in the country created under Stellantis' legacy companies. The automaker earlier this year hailed its performance in 2021 in the country as a "turnaround." Dongfeng Peugeot Citroën Automobile Co. Ltd, the joint venture with China's Dongfeng Motor Corp. that produces vehicles formerly owned by PSA, sold more than 100,000 vehicles in 2021, more than doubling the annual sales volume of 2020.

It also recognized Jeep as having its best year for Wrangler SUV sales there and the launch of the Compass crossover at a plant in Changsha in central China. Jeep falls under Stellantis' joint venture with Guangzhou Automobile Group Co. Ltd. made originally with FCA.

Stellantis in January said it will increase its ownership of the partnership to 75% from 50% to boost the SUV brand in China. Public announcement of the plan, however, was met with backlash from GAC, which said it hadn't agreed to the release. The deal is subject to Chinese regulatory oversight, which means the company must disclose the step to investors.

Stellantis also has said it will introduce Opel as an all-electric brand in China to capture the popularity there of German makes. Opel would join Citroën, DS, Fiat, Jeep, Maserati and Peugeot vehicles there. Stellantis also has restructured its spare parts distributors in the country to one single national distributor that last year booked revenue of $197 million (176 million euro) in the aftermarket.

"In China," Tavares said, "we need to make some strategic moves to drive our brands profitable growth in an asset light business model, aiming at 20 billion in net revenue with enhanced brand equity, and expanded independence aftermarket activities."

Twitter: @BreanaCNoble