Stellantis NV CEO Antonio Filosa on Thursday morning was unveiling a new five-year, nearly $70 billion business plan for the transatlantic automaker that will channel a bulk of its brand and product resources to four of the company’s 14 nameplates: Jeep, Ram, Peugeot and Fiat.
Filosa was set to detail the new strategic plan called FaSTLAne 2030 to investors at a gathering in Auburn Hills on Thursday. Early details provided to journalists said that beyond the company’s new focus on the four core global brands — which Stellantis explained have “the greatest scale and the highest potential for profitability” — another key area of investment would be on the automaker’s commercial vehicle unit, Pro One.
The updated strategy said the Chrysler, Dodge, Citroen, Opel and Alfa Romeo brands will continue on, but as regional players. DS and Lancia will now be managed by Citroen and Fiat as “specialty brands,” and Maserati will continue on as a “pure luxury” brand.
In all, Stellantis executives said about $42 million in investments over the next five years would be focused on brands and products, with about $28 billion on platforms, powertrains and technology, including artificial intelligence.
The refreshed strategy also includes increased partnerships with Chinese automakers and others, some of which were already announced in recent days. They include an agreement with Jaguar Land Rover to work together on U.S. vehicle development, a European partnership with Chinese automaker Dongfeng, and deepening ties with existing Chinese partner Leapmotor in Europe.
The new strategic plan claims nearly $7 billion in annual cuts, and says that Stellantis will reach positive cash flow by 2027. In its critical North American region, the company is targeting 25% revenue growth as it launches 11 new vehicles in the next five years. It also pledges seven new vehicles under $40,000, and two under $30,000, as the company seeks to address affordability concerns.
Investors and other stakeholders will be eager to hear more details Thursday about how Stellantis can rebuild its profitability and sales over the five years. The automaker’s New York-listed shares are down by more than a third this year, hit especially hard by massive costs associated with unwinding its electric vehicle investments.
More details on new U.S. models are also anticipated Thursday. The automaker already, earlier this week, notably announced new Ram “muscle trucks” that executives hope can boost that brand’s American sales turnaround.
Check back here throughout the day for the latest updates.
This article originally appeared on The Detroit News: Live updates: Stellantis unveils new focus on Jeep, Ram, Peugeot, Fiat brands
Reporting by Luke Ramseth, The Detroit News / The Detroit News
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