Stellantis $6.1B South American investment includes 'bio-hybrids'

Stellantis NV said Wednesday it plans to spend $6.1 billion in South America from 2025 to 2030 as it looks to launch dozens of new products and reduce its emissions across the region.

The 5.6 billion euro investment will back 40 new products over that five-year span, build up the company's bio-hybrid technology — which are hybrid engines powered by ethanol — and bolster several other key business segments.

The maker of Jeep, Ram, Chrysler, Dodge, Fiat and other brands is already an automotive leader in the region, selling 878,000 vehicles last year giving it 23.5% market share. In Brazil, it leads with 31.4% share, the company announcement said. It said this $6.1 billion infusion would be the largest ever for the Brazilian and South American auto industry.

CEO Carlos Tavares said in a statement that the investment is "a critical part of our 'third engine' growth strategy" and will help the region "take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners."

The company's larger Dare Forward 2030 plan aims to invest more than $50 billion in electrification over the coming decade.

Stellantis said its bio-hybrid technology development in the region would especially benefit from the cash infusion. That includes a facility in Betim, Brazil, that the company calls its "global center of expertise" for the technology. The company says it may use the technology across a number of new vehicles in the coming years, with the first available late this year.

Stellantis said in the announcement the investment will also allow it to keep its advantage in other areas, like ensuring it has access to materials for batteries, and continue to dominate the auto parts distribution scene in South America.

In January, General Motors Co. announced it was investing big in South America. It plans to spend $1.4 billion largely on upgrades to production facilities in Brazil that make gas-powered vehicles, as well as on importing several types of both gas and electric-powered vehicles to the region. Ford Motor Co., meanwhile, stopped vehicle production in Brazil several years ago and restructured other operations in the region starting in 2021.

lramseth@detroitnews.com

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