Stellantis CEO, Carlos Tavares, announced on Friday that the company will not sell electrified vehicles at a loss like other automakers have done in the past. This marks a significant departure from the norm, as many automakers have resorted to selling EVs at a loss in order to drive sales, meet fuel economy standards, or build up capacity with the hope of eventually making a profit. Tavares emphasized that Stellantis is currently making money from its electrified vehicles and intends to continue doing so with its next-generation models.
A Profitable Ventures in Electrification
Unlike its predecessors, Stellantis is making a conscious effort to ensure profitability throughout its electrification journey. Tavares stated during a roundtable discussion that the company is making money in both the European and American markets with its electrified vehicles. He stressed the importance of sustainable profitability for the company’s long-term success.
Stellantis currently offers 25 EV models globally and plans to launch an additional 23 by the end of this year. Despite a slower-than-expected adoption of EVs in many countries, the automaker remains committed to investing 50 billion euros ($54.4 billion) in electrified vehicles and related technologies through 2030. Tavares stated that there is no intention of slowing down the EV roadmap for Stellantis, although plans may be subject to change based on consumer demand and potential political shifts resulting from upcoming elections in the US and Europe.
Stellantis introduced the details of its “STLA Large” platform, which will underpin eight new vehicles, including all-electric models, through 2026. This platform is one of four architectures that form the basis of the company’s next-generation models. While the exact number of electric vehicles to be released on the platform was not disclosed, it is designed to support various propulsion systems, such as plug-in hybrid electric vehicles (PHEVs), non-plug-in hybrids, and traditional internal combustion engines. The EV models on the “STLA Large” platform will be available in 400-volt and 800-volt battery electric vehicle architectures, offering a range of charging speeds and an impressive driving range of approximately 500 miles for sedans.
Stellantis plans to initially launch vehicles on the “STLA Large” platform in the North American market. The Dodge and Jeep brands will be the first to introduce these new models, followed by Alfa Romeo, Chrysler, and Maserati. This strategic approach aims to capitalize on the popularity of these brands and further establish Stellantis’ presence in the electric vehicle market.
Stellantis’ commitment to profitability in the electrified vehicle segment sets it apart from other automakers. By prioritizing sustainable financial success and making money from the start, the company is taking a different approach to the industry’s transition to electric mobility. While challenges and uncertainties remain, Stellantis remains resolute in its dedication to electrification and is poised to make a significant impact in the evolving automotive landscape.
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