Automaker Stellantis is making a bold statement in the automotive industry by vowing to sell electrified vehicles, including hybrids and all-electric models, at a profit. This strategy sets them apart from other companies who have sold EVs at a loss for various reasons. CEO Carlos Tavares spoke in a roundtable discussion, emphasizing the importance of profitability in ensuring the long-term sustainability of the company.
Traditionally, automakers have resorted to selling electrified vehicles at a loss to boost sales, meet fuel economy standards, or build up capacity with hopes for future profitability. However, Stellantis has taken a different route. With 25 EVs currently available globally and another 23 set to be launched by the end of this year, the company is making a profit on its electrified vehicles. The announcement of an all-electric version of the Jeep Wrangler SUV and a Dodge muscle car further solidifies Stellantis’ commitment to the electric vehicle market.
Long-Term Investment in Electrification
Stellantis is investing 50 billion euros ($54.4 billion) in electrified vehicles and related technologies through 2030. Despite slower-than-expected adoption rates in certain countries, Tavares emphasized that there is no intention of slowing down their EV roadmap. The company remains fully committed to its electrification plans. However, Tavares did mention that these plans could be influenced by consumer demand and potential political changes resulting from upcoming elections in the U.S. and Europe.
The STLA Large Platform
As part of their next-generation models, Stellantis is introducing the “STLA Large” platform. This platform is one of four architectures that will support the company’s upcoming vehicles. Stellantis plans to launch eight new vehicles, including all-electric models, on the “STLA Large” platform, which will be the foundation for these vehicles until 2026. It is worth mentioning that this platform will also support other propulsion systems, including plug-in hybrid electric vehicles (PHEVs), non-plug-in hybrids, and traditional internal combustion engines.
Stellantis is aiming to cater to a wide range of consumers by offering vehicles on the “STLA Large” platform with both 400-volt and 800-volt battery electric vehicle architectures. This versatility allows for various charging speeds and provides a driving range of approximately 500 miles for sedans. The company plans to initially release these vehicles in the North American market, starting with the Dodge and Jeep brands, followed by Alfa Romeo, Chrysler, and Maserati.
Stellantis’ decision to sell electrified vehicles at a profit sets them apart from their competitors. By prioritizing financial sustainability, the company is confident in their ability to navigate the evolving automotive landscape. While other automakers have taken a different approach, Stellantis believes that profitability is vital for their success. As the company continues to invest in electrification and adapt to changing consumer demands, the future looks promising for Stellantis and their electrified vehicle lineup.