Stellantis aims to double car sales by 2030 and keep profit margins above 10 per cent as it shifts to electric only transactions in Europe with the aim of becoming completely carbon free by 2038.
Half of the sales from the Jeep and Ram owner in the US will be fully electric by the end of the decade, while upmarket brands Alfa Romeo and Maserati will only launch battery models after 2025, the company said on Tuesday in an ambitious strategy update.
Investing in electric cars will lead to the company’s margins falling from 11.6 per cent last year to “more than 10 per cent” until 2027, before climbing to “more than 12 per cent” by the end of the decade, the group claimed.
The company said the amount of cash generated by the business will fall from €6.1bn last year to €6bn in 2024, before rising to €12bn in 2027 and more than €20bn in 2030.
Despite the upbeat ambitions, Stellantis shares fell 5 per cent to €15.62 by late Thursday afternoon in Europe.
The new strategy for the business, formed a year ago by the €50bn merger of PSA and Fiat Chrysler, is a significant shift towards electric for a company that was among the most critical of battery-powered cars.
Carlos Tavares, chief executive, said the change in targets was designed to keep the company “competitive”, particularly as governments crack down on carbon emissions.
“The frame for electric mobility has been set [by regulators],” he said. “The purpose today is not to express our opinion, it is about being competitive,” he added.
He repeated warnings that rising prices from battery models may push the middle classes out of private car ownership, but stressed shifting to complete carbon neutrality is “the right thing to do for my kids and grandkids”.
Stellantis also aims to grow certain parts of the business, including its commercial vehicle sale, upmarket brands and businesses outside of its North American and European heartlands.
While the US accounts for half of revenues and Europe for a third, the company wants its other regions to account for a quarter of its expanded sales by the end of the decade. It expects group revenues to rise from €152bn in 2021 to €300bn by 2030.
Stellantis hopes to make its commercial vehicle business “the undisputed leader in market share and profitability”, with revenues doubling by 2030 and 40 per cent of sales being zero emission by the end of the decade.
The group’s premium brands, which also include DS, expect revenues to rise fourfold and profits to increase fivefold by 2030, while it will launch 20 battery models across its high-end range.
Stellantis plans to double sales by 2030 in electric shift
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