Stellantis is hoping to tighten its grip on automotive markets in South America by announcing what it claims to be the largest carmaker investment in the region.
It pledges to invest €5.6 billion ($6.1 billion) to support the launch of more than 40 new vehicles from 2025 to the end of the decade.
Topping the bill will be the development of new Bio-Hybrid powertrains, decarbonization measures across the automotive supply chain and strategic new business opportunities.
Hybrid powertrains using bio-fuels such as ethanol are included in the automaker’s plan to reduce greenhouse gas emissions while combining internal-combustion-engine technology with electrified powertrain support on three different levels.
The Stellantis facility in Betim, Brazil, is the company’s global center of expertise for Bio-Hybrid technology. Under the Fiat brand it is developing bio-fuel engines which use 100% ethanol.
The Bio-Hybrid technology is supported by three hybrid powertrains, including self-charging hybrids, hybrids with dual-clutch transmissions and plug-in hybrids that will be gradually produced and introduced to the market. These new hybrid technologies will start to be available in South American markets by the year’s end.
In the future, Stellantis also plans to produce battery-electric vehicles in the region. In Argentina the company acquired a 19.9% stake in Argentina Litio y Energía S.A., a step toward establishing a cluster of sustainable battery materials to meet its electrification goals.
The automaker claims to be the leader in the three main markets in South America: Brazil, Argentina and Chile. Last year, its total sales in the region surpassed 878,000 vehicles, a 23.5% market share. Fiat is the best-selling brand in Brazil and South America and the Fiat Strada pickup (pictured) is the best-selling vehicle in the country and the region.
Stellantis CEO Carlos Tavares says: “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. As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners. I want to thank each team member involved in helping create and execute our investment strategy so that, together, we can achieve our industry-leading carbon neutrality ambition.”
