Stellantis, the new company created by the merger of Fiat Chrysler and PSA, is moving aggressively to prepare for an electrified future, CEO Carlos Tavares said during the company’s first annual meeting this week.
During 2021, the newly merged company expects to triple sales of electrified vehicles, which he defined as plug-in hybrids and battery-electric vehicles, to roughly 400,000 units. Sales of battery electric and plug-in hybrid cars in the European Union, where regulation of emissions have become much tighter, skyrocketed to more than 1 million vehicles in 2020, accounting for more than 10% of overall sales.
Tavares also said Stellantis also is moving ahead with development of four different electrified platforms for future vehicles. The company expects to have electrified versions of every model by 2030, he said.
Stellantis’ key rivals in North America, General Motors and Ford Motor Co., are making major investment in electric vehicles. GM expects to spend $27 billion, and Ford is spending $22 billion but Stellantis has not put a figure yet on its plans but is planning to offer more details of its plans in July, Tavares said.
Platform strategy for electrification
The four platforms will include one for small, electric A-, B-, C-class vehicles, midsized D-class vehicles and larger vehicles as well as what Tavares described as a “frame” platform that specifically will support electrified light trucks and sport-utility vehicles.
The four platforms will begin phasing into the line-up in 2023 and concluding in 2026. Tavares did say the small vehicle platform will have a range of 311 miles, the medium will come in at 435 miles, the large at 497 and the frame at 311 miles.
The goal of ongoing development is to have electrified vehicles account for 38% of Stellantis sales in Europe by 2025 and 70% of European and 35% of sales in North America where by 2030 as well as a large percentage of sales in China.
Tavares added that Stellantis has 14 different than 100 different nameplates and Stellantis will be able to offer and electrified options for each of its nameplates before the end of the decade.
Controlling the EV supply chain
As the company accelerates it move to electrification, Stellantis is also taking steps to ensure it has control of the supply chain required to put electrified vehicles on the street. It will begin building electric motors in a joint venture that will go into operation in 2022. It will also begin building dual-clutch transmissions, Tavares said.
“We will be able to control 80% of the value chain of EVs,” he said, which is a greater percentage of the value chain for internal combustion engine vehicles it currently builds.
Stellantis also has entered into a long-term agreement with SAFT for battery packs and battery cells. The supply of batteries will be critical by 2025 and Stellantis-SAFT are preparing to build two plants, one in France and one in Germany, to supply its needs.
“We will have our own Gigafactory,” he said, adding no decision has been made yet, but Stellantis is also considering construction of a third battery plant in North America.