On July 8th, Stellantis, which was merged by Fiat Chrysler (FCA) and Peugeot Citroen (PSA), announced its financial objectives and a new electrification strategy six months after its establishment.
The company plans to improve profitability in the next few years, and the factors that can support this goal are the synergy opportunities for the new company (expected to exceed 5 billion euros in annual cash synergies in a stable state), battery cost reduction routes, continuous optimization of distribution and production costs, and new sources of revenue (especially from connected services and future software business models). In the medium term (), Stellantis's goal is to achieve sustainable, double-digit adjusted operating profits by 2026, making the company the benchmark for global electric travel profits.
Stellantis aims to become the market leader in the (LEV) of low-emission vehicles. Stellantis's European target for low-emission passenger vehicles is to grow steadily to more than 70 per cent by 2030; in the US, the LEV combination of Stellantis passenger cars and light trucks is expected to exceed 40 per cent by 2030.
To achieve this goal, Stellantis plans to invest more than 30 billion euros in electrification and software by 2025, including equity joint ventures. The company will continue to work to improve its leading position in the European commercial vehicle market and strengthen its position in North America, with the goal of becoming the global leader in electric commercial vehicles. Leveraging expertise and synergies, the company's commercial vehicle electrification promotion will cover all products and all regions over the next three years, including the delivery of hydrogen fuel cell medium trucks by the end of 2021.
Stellantis electrification roadmap covers the entire industry chain. The company's electric car battery procurement strategy is to ensure that the capacity of the three major superfactories in Europe and North America exceeds 130 GWh; by 2025 and that the capacity of the five superplants exceeds 260 GWh by 2030. In addition, Stellantis has signed memorandums of understanding with two lithium geothermal brine process partners in North America and Europe to ensure a sustainable supply of lithium.
In addition to the procurement strategy, Stellantis's technical expertise and manufacturing synergies will reduce battery costs. Stellantis said its electric car battery pack aims to reduce the cost of its battery pack by more than 40 per cent from 2020 in 2024 and more than 20 per cent by 2030. The company intends to maximize the full value of the battery life cycle through maintenance, remanufacturing, reuse and recycling, and to ensure a sustainable system that gives priority to customer needs and environmental issues.
User-centric
Stellantis will give priority to economical (Affordability), and hopes that by 2026, the total cost of owning an electric car will be comparable to that of an internal combustion engine. For the company, electrification is not an one-size-fits-all plan, its 14 brands are committed to providing first-class pure electric solutions, but also continue to strengthen the brand DNA. For each brand, Stellantis has also developed a corresponding electrification strategy.
Mileage and fast charging are the key to whether consumers can accept electric cars. Stellantis's all-electric vehicles will have a range of 500km / 300mph and a fast charging capacity of 32km / 20mph to meet these challenges.
Through the memorandum of understanding signed by Free2Move eSolutions and Engie EPS, the company hopes to emulate Free2Move eSolutions's business model in the North American market to support the development of fast charging networks across Europe to meet the needs of different customers.
Intelligent technology enabler
The pillars of Stellantis electric vehicles are four platforms centered on pure electric vehicles. Each platform can support the production of up to 2 million vehicles per year, and the design has a high degree of flexibility (length and width) and a high level of parts sharing, providing economies of scale.
The four major platforms are: STLA small platform: mileage up to 500km / 300mil; STLA medium platform: mileage up to 700km / 440mil; STLA platform: mileage up to 800km / 500mil; STLA Frame platform: mileage up to 800km / 500mil.
Stellantis will develop software and control systems internally to maintain the unique characteristics of each brand. The company also plans to tailor battery packs for a variety of vehicles-from small city cars to energy-intensive battery packs for high-performance vehicles and trucks.
