What Happened:
An auto-company that owns auto brands including Jeep, Chrysler, Fiat, and Ram has announced its largest investment in Brazil and other regions of South America. The investment is expected to bring 40 new products, expand decarbonization technology, and continue sustainable regional growth, according to the Stellantis website. Stellantis is also aiming to achieve its carbon-net-zero objectives by 2030 with this project.
The investment lasts from 2025 to 2030 and will reinforce the automotive supply chain in the region. They are aiming to “electrify” their production with investments in bio-hybrid technologies, including energy storage, and 100% ethanol fuel.
The Details:
Stellantis is the manufacturing leader in South America by being the primary producer in three main markets: Brazil, Argentina, and Chile. Their fiat brand is the best selling product in South America, including Brazil.
The company is using part of this investment money to secure sources to produce batteries. They also acquired Norauto and DPaschoal, both of which were autopart manufacturers. This now makes Stellantis the largest autoparts distributor in the region.
Last year, the company sold 878,000 vehicles, which gave it a 23.5% market share. In the largest economy in Brazil, they own a 31.4% market share. CEO Carlos Tavares said that the investment is a “critical part of our ‘third engine’ growth strategy” and will make South America “take a leading role in accelerating the decarbonization of our mobility together.”
What’s Next:
The investment is meant to secure funding for the region so that new technologies can be developed, but also so that Stellantis can hold onto its competitive advantage in the region. The primary goal is to ensure access to materials for the production of new and existing technologies.
Earlier in the year, General Motors announced a $1.4 billion investment that was used to upgrade production facilities for both gas and electric vehicles. For Motor Co. stopped production in Brazil and restructured into other operations.
Brazil, Argentina, and Chile are expected to benefit greatly from new jobs and new innovations in the region.
