Stellantis (NYSE:STLA) announced a new five-year strategic plan on Thursday, committing to a €60 billion ($69.7 billion) investment. The company’s U.S.-listed stock declined 5.44% in pre-market trading.
CEO Antonio Filosa announced at the automaker’s investor day that he aims to achieve annual cost savings of €6 billion (about $6.5 billion) by 2028. The plan involves allocating €36 billion (about $39 billion) to launch over 60 new vehicles and major refreshes of 50 existing models, spanning all-electric vehicles, hybrids, and traditional internal combustion engines, reported CNBC.
The rest of €24 billion (about $26 billion) will be directed towards global vehicle platforms and new technologies. Despite a loss of €22.3 billion (about $24 billion) last year, Stellantis expects to achieve positive free cash flow by 2028.
The company also confirmed that none of its 14 automotive brands will be eliminated. However, operations of its DS and Lancia European units will be integrated into Citroen and Fiat, respectively. Fiat has been identified as one of four “global brands” alongside Jeep, Ram Trucks, and Peugot.
Stellantis also announced the launch of a new “STLA One” vehicle platform in 2027, designed to consolidate five different platforms into one scalable architecture, aiming for a 20% cost efficiency. By 2030, the company targets that half of its volume will be produced on three global platforms, with up to 70% component reuse.
Stellantis Expands Global EV Strategy
The strategic plan comes on the heels of Stellantis’ recent moves to expand its global electric vehicle (EV) footprint. The automaker had earlier announced plans to launch China EVs in Europe, in a joint venture with Dongfeng. The JV would leverage Stellantis’ retail and after-sales network, while also coordinating sourcing and engineering with Dongfeng’s China-based NEV capabilities.
Stellantis also revealed plans for an affordable Mini EV built for Europe’s streets, aiming to revive Europe’s shrinking small-car segment with low-cost, fully electric city vehicles designed and built in Europe.
Benzinga Edge Stock Rankings shows that STLA had a stronger price trend over the short term but a weaker trend over the medium and long term. Its momentum ranking was poor at the 9.28%. Benzinga’s screener allows you to compare STLA’s performance with its peers.
STLA Price Action: On a year-to-date basis, the stock plunged 34.06%, as per Benzinga Pro. On Wednesday, it closed 2.45% higher at $7.53.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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