Stellantis unveils strategic plan, targets positive cash flow by 2028

AUBURN HILLS, Mich. — Stellantis said Thursday it plans to invest 60 billion euros (US$69.7 billion) under a new five-year strategic plan by CEO Antonio Filosa that also targets annual cost savings of 6 billion euros by 2028.

The plan includes putting 36 billion euros toward the company’s massive portfolio of automotive brands to launch more than 60 new vehicles as well as major refreshes of 50 other models, including all-electric vehicles, hybrids and traditional internal combustion engines.

The other 24 billion euros will be put toward global vehicle platforms and new technologies for the automaker and its products, according to the company.

Stellantis also said it plans to achieve positive free cash flow by 2028 after losing 22.3 billion euros last year that included a 22 billion euro restructuring pulling back from all-electric vehicles.

Shares of Stellantis on the New York Stock Exchange were off 4% during pre-market trading on Thursday.

Under the plan, Stellantis will not eliminate any of its 14 automotive brands, but it will fold operations of its DS and Lancia European units into Citroen and Fiat, respectively, according to the company.

Fiat is one of four designated “global brands” alongside Jeep, Ram Trucks and Peugot. That division also includes the Pro One commercial operations. Its regional brands will include Chrysler, Dodge, Citroen, Opel and Alfa Romeo. It also owns luxury brand Maserati.

To assist in reducing costs, the company plans to launch a new “STLA One” vehicle platform in 2027. The new platform is designed to bring together five different platforms into “one scalable architecture, reducing complexity and expanding coverage.” It targets achieving 20% cost efficiency, the company said.

By 2030, Stellantis targets 50% of its volume will be produced on three global platforms, with up to 70% component reuse.

Filosa — who began leading the automaker less than a year ago — and other executives are set to lay out details of the “FaSTLAne 2030” plan throughout the day Thursday during his first investor day as CEO at the company’s North American headquarters near Detroit.

Stellantis Chairman John Elkann, a scion of Fiat’s founder and CEO of Europe’s prominent Exor, on Thursday called the plan “ambitious, but realistic” while outlining industry challenges as well as opportunities for the company under Filosa and his new plan.

The plan’s core pillars include “sharper management” of the brand portfolio, new investments, enhanced partnerships, an optimized manufacturing footprint, “excellence in execution” and empowerment of the company’s regions and local teams.

“What we want you to take away from today is that Stellantis, with all its assets, its capabilities, and its new strategic plan, is well positioned to succeed,” Filosa said to open the event. “You will hear from us today how we leverage our regional roots, our global scale, our partnerships and the new technologies in our journey going forward.”

The company this week announced several new or expanded tie-ups that included Jaguar Land Rover for the U.S. as well as with Chinese automakers Leapmotor and Dongfeng Group, primarily for Europe and China.

As the company partners with Chinese automakers, it’s also competing against them as many of the companies increase sales in Europe.

Amid such competition, Stellantis said it expects to cut European capacity by more than 800,000 units, while repurposing plants and leveraging partnerships as well as “aiming to preserve manufacturing jobs.”

In both Europe and the U.S., Stellantis said it targets 80% plant utilization in 2030.