Stellantis, the company formed one year ago from the merger of Fiat Chrysler Automobiles and France’s PSA, has plans to double its net revenues by 2030 while moving more of its 14 car brands to being fully electric, CEO Carlos Tavares said in a presentation Tuesday.
The company also says it will reduce its carbon emissions by 50% by that time as it moves towards complete carbon neutrality by 2038. In total, the company expect its revenues to hit about €300 billion, or $333 billion, by 2030, he said.
Fiat Chrysler and PSA joined together a year ago in hopes they could rely on one another to save enough in costs to finance the needed shifts towards electric vehicles. The late Fiat Chysler CEO Sergio Marchionne had expressed skepticism and Tavares has also wondered if they are the best solution to the industry’s problems. Still, Tavares has said he is committed to making Stellantis competitive in electric vehicles.
Stellantis has provided target dates for a number of its 14 different car brands, which include Jeep, Chrysler, Ram, Dodge, Opel and Peugeot, to sell only electric vehicles. As part of Tuesday’s broad strategy presentation, Tavares showed an image of the Jeep brand’s first fully electric SUV which, he said, will go on sale early next year.
Stellantis plans to increase sales of its more profitable luxury and premium brands such as Maserati, Alfa Romeo, DS and Lancia from just 4% of its new car revenues today to 11% by 2030, Tavares said. All of these brands will sell only electric cars by then, as well.
General Motors made similar revenue growth projections last fall as the automaker moves towards selling more electric cars and leveraging software and data to create new income streams from things like insurance and ride hailing.
Stellantis plans to earn €20 billion, or $22 billion, in revenue with a roughly 40% profit margin from software services, features and subscriptions, and vehicle pricing. The automaker hopes to make roughly a third of its sales fully online by 2030, something that will vary depending regulations in various local markets, Tavares admitted.
By 2024, the company plans to introduce STLA Autodrive, an autonomous driving system being developed with BMW that allows for hands-off-the-wheel and eyes-off-the-road driving. Some time after that, Stellantis plans to roll out a semi-autonomous delivery driving system it is developing with Waymo, he said.
The automaker will also create a separate global division purely for commercial vehicles such as vans and heavy duty pickups. Stellantis will develop both electric and hydrogen fuel cell vehicles for these markets as the company aims for global leadership in the segment, Tavares said. Stellantis recently announced a deal with Amazon that includes Amazon’s purchase of Ram and Fiat electric vans from Stellantis.
Stellantis already has what the automaker says is a profitable car sharing service called Free2Move. It is operating in Europe and several US cities offering users various Stellantis models such as the Jeep Renegades and Citroën Ami cars. The subsidiary also offers parking as well as car rental and leasing services. The division earns €40 million in revenue today, or $44 million, according to Stellantis, an amount the company expects to grow to €2.8 billion, or $3.1 billion, by 2030.
In China, where Stellantis’s two predecessor companies struggled, the auto conglomerate plans to rely on an “asset light” model with just one factory in the country. Stellantis will rely more heavily on imports of profitable Jeep and Maserati models.
The automaker is putting €300 million euros, or about $333 million, into a venture capital fund to invest in a variety of outside ventures. These could include advanced materials, financial technologies and propulsion systems.
For investors, the company plans to maintain a 25% to 30% dividend through 2025 and maintain funds for a 5% stock buyback.