The multi-brand auto giant intends to spend six billion dollars on the development and production of new internal combustion engines and models in South America.
Today, Stellantis is the leader in sales of new cars in South America, with a market share of 23.5% for the auto giant's brands. It is not surprising that the manufacturer intends to invest in this region: investments in the amount of 6 billion US dollars have been agreed upon, this money, according to the plan, should be spent in the period from 2025 to 2030.
In the photo: one of the most popular cars in Brazil — Fiat Strada
The press service of the auto giant noted that the budgeted investments will be spent, among other things, on the launch of over 40 new products during the specified period. The manufacturer intends to spend a significant portion of the funds on the development and production of new internal combustion engines, which can use both gasoline and ethanol as fuel; they will be provided with various levels of electrification. It is expected that in the future the region will also master the production of completely “green” models powered by rechargeable batteries.
It is assumed that Stellantis will be able to use “biohybrid technology” to produce both as part of some new models and as part of existing cars of various brands that are part of the auto giant’s extensive portfolio: their production is now established at South American factories. The list of announced developments also includes an automatic dual-clutch transmission (eDCT). The company noted that the very first models with the new “filling” will go on sale towards the end of 2024.
It is worth noting that Stellantis accounts for 31.4% of the Brazilian automobile market; the auto giant is also among the sales leaders in Argentina and Chile. In addition, in South America the manufacturer was at the head of the commercial vehicle segment, with a share of 28.6%. By the way, one of the most significant reasons why, based on the results of 2023, Fiat has become the best-selling Stellantis brand for the third year in a row is its high performance in the South American market.
In the photo: Ram Rampage
Many automakers around the world have been impacted by the demand crisis for electric vehicles. Let us recall that last year the German concern Volkswagen had to temporarily shut down its factories due to weak demand for “green” models. The Japanese corporation Toyota was not pleased with the sales results of electric trains either, after which management promised to continue developing new internal combustion engines. Over the next decade, the French brand Renault also plans to produce cars with internal combustion engines. And Mercedes-Benz decided to postpone full electrification and continue updating models with internal combustion engines.
In general, the mass consumer in the global car market was not ready to switch to electric cars. However, there are still those willing: this has allowed, in particular, to become optimistic about the Polestar brand (despite the fact that the parent company Volvo recently refused to finance it). The management of the “star” brand believes that it will be able to use the current crisis in demand for electric vehicles and the disappointment of a number of manufacturers to its advantage.