Newly-formed Stellantis (NYSE:STLA), a combination of Peugeot-maker PSA and Fiat Chrysler, wants to use its clout to take on rivals racing to produce more electric vehicles, CEO Carlos Tavares said Wednesday.
Stellantis is now the world’s 4th largest carmaker, with 14 brands including Abarth, Opel, Jeep, Ram, Alfa Romeo and Maserati, and like its peers, it is having to deal with a shortage of semiconductors.
Low global car inventories and cost cuts should help boost profit margins this yr, though the carmaker is also looking beyond savings.
“This is a merger that is going to open new opportunities for a company that is sound, with talented people … who do not want to be cornered in a legacy or a dinosaur position,” CEO Tavares said.
Stellantis aims to deliver over EUR 5-B a yr in savings through the merger, as well as bulking up to face industry challenges.
Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by Y 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan.
The group said Y 2021 results should be helped by 3 new high-margin Jeep vehicles in North America and a strong pricing environment there. The US market has driven profits for yrs at FCA and starts off as the strongest part of Stellantis.
The group is now working through reorganizing some of its factory set-ups, though it has pledged to close no plants, and finalizing new management teams.
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