Stellantis shifts focus to South America, investing in combustion engines
The limited appeal of combustion engines is a notable shortcoming for Stellantis in Europe. In the lineups of brands like Peugeot and Opel, you'll come across several appealing models that, unfortunately, are missing a "real" engine. The announcement that Stellantis plans to invest $6 billion initially sparked optimism, but this quickly faded when it was revealed that Europe is not included in these plans.
11:23 AM EST, March 7, 2024
Europe fully embraces electromobility, whereas the new investments are earmarked for South America. The conglomerate, which houses 14 brands, intends to allocate a record $6 billion towards developing gasoline and ethanol engines. These will power up to 40 models across various brands, set to launch between 2025 and 2030.
These new engines are designed to be fully compatible with existing production lines in South America, facilitating cost reductions. Stellantis is confident that this strategic pivot will yield significant profits. This belief seems justified given the company's substantial market share of up to 31.4 percent in Brazil and 23.5 percent across South America.
In 2023 alone, Stellantis reported the sale of 878,000 vehicles in the region, with a significant contribution from Fiat, which ranks as the most favored brand in numerous Latin American countries.
