Stellantis to make historic $6B investment in South America

[ad_1]

Stellantis on Wednesday announced a huge investment in South America.

The company, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, said it will pump more than $6.1 billion (5.6 billion euros) into the region, which it dominates, between 2025 and 2030, to launch 40 new products and make other key investments. Stellantis' former chief operating officer for South America took over global leadership of Jeep last year.

The automaker called it the "largest investment in the history of the Brazilian and South American automotive industry."

Stellantis CEO Carlos Tavares said in a news release that the region would take a leading role in accelerating the decarbonization of mobility.

The investment will include development of biohybrid technologies. The release noted that the company's Betim, Brazil, facility is its global center of expertise in that arena.

“This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here,” Tavares said in the release.

Reuters reported that the investment was "announced shortly after a meeting between company executives and (Brazilian) President Luiz Inacio Lula da Silva" and comes as the Brazilian government tries to "reignite" the country's automotive industry. The news service noted that GM, Volkswagen, Hyundai and Toyota had already announced their own investments in the country.

Stellantis is developing what it's calling a third engine strategy to accelerate revenue growth outside North America and Europe, targeting South America, the Middle East and Africa, China, India and the Asia Pacific segments.

The release touted the company's sales dominance in Brazil, Argentina and Chile, the continent's three main markets.

"Last year, Stellantis' total sales in the region surpassed 878,000 vehicles, with a 23.5% market share. The company is the sales leader in Brazil with a 31.4% market share and maintains leadership in light commercial vehicle sales in South America, with a 28.6% market share. Fiat is the best-selling brand in Brazil and South America, and the Fiat Strada pickup is the best-selling vehicle in the country and the region," the release said.

By comparison, the company's market share in the United States dropped below 10% last year, setting the stage for a reset as the company saw its U.S. sales numbers surpassed by South Korea's Hyundai. Antonio Filosa, who replaced Christian Meunier as Jeep brand CEO in 2023, told journalists at the company's Auburn Hills offices recently that he and his new leadership team will be pushing to boost Jeep sales in the United States, which he said offers the best opportunity for growth globally for the brand.

"We need to do something on market penetration and market share because it’s not where this brand deserves to be,” Filosa said.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.

[ad_1]

Source link : https://www.freep.com/story/money/cars/chrysler/2024/03/06/stellantis-to-make-historic-6b-investment-in-south-america/72866076007/ Author : Publish date : 2024-03-06 03:00:00 Copyright for syndicated content belongs to the linked Source .