Stellantis Is Sending Mixed Messages About Its Future Vehicles

In recent months, Stellantis has faced considerable backlash over its push towards electric vehicles (EVs), but it’s worth noting that the company isn’t abandoning internal combustion engines (ICEs) and hybrids just yet. However, Stellantis’ management seems reluctant to emphasize this fact, leading to confusion and frustration among consumers and industry watchers alike.

Mixed Messaging from Stellantis –

Stellantis has made headlines for its ambitious plans to electrify its vehicle lineup. With 25 new models set to launch this year, 18 of which are slated to be electric, the company’s commitment to EVs is clear. Yet, behind the scenes, Stellantis is also developing ICE and hybrid vehicles, a fact that has not been prominently communicated.

Natalie Knight, Stellantis’s CFO, recently discussed the company’s strategy during an earnings call. Knight emphasized that while Stellantis is committed to the EV market, it retains the flexibility to respond to consumer demand for other propulsion systems. “We’re committed very much to the EV market, but, on the other hand, we have the flexibility to go and grow where the consumer demand is,” she stated.

Even Jeep® CEO Antonio Filosa has hinted that the brand’s new all-electric offerings could be altered to find alternative powertrains. “[While] being faithful to our main strategy of deep electrification, we can think about opportunities on Recon. Let’s see: Recon will be built on a platform that is very versatile,” he said. “We are just studying [development on the Recon] and just analyzing if there are options for the future — but so far it’s BEV.”

This lack of transparency about anything outside of its EV lineup is causing confusion and frustration among its consumer base.

Multi-Energy Platforms: A Key Strategy –

One of Stellantis’ strategic moves is using multi-energy platforms, particularly the STLA Large platform. This allows the company to produce ICE, hybrid, and electric versions of the same model, such as the upcoming Dodge Charger, which will be offered in both ICE and EV configurations. This flexibility is crucial as it enables Stellantis to adapt to varying market demands across different regions.

Despite focusing on EVs, Stellantis has seen significant success with its plug-in hybrid (PHEV) models. PHEV models remain popular for those on the fence about the full transition to EVs. However, despite being the leader in PHEV sales in both the U.S. and Canada, Stellantis has not embraced future PHEV models (except the long-awaited Gladiator 4xe) and continues to push more expensive EVs.

While EV sales continue to slow, PHEV sales in the U.S. have risen by 79% year-over-year, with models like the Jeep Wrangler Unlimited 4xe, Jeep Grand Cherokee 4xe, Dodge Hornet R/T PHEV, and Chrysler Pacifica Hybrid leading the charge.

A Global Balancing Act –

Launching 25 models worldwide in a single year is no small feat, and Stellantis must navigate diverse market trends and consumer preferences. However, Stellantis will continue to struggle if it does not listen to its customer base in each market and instead focuses on a global agenda like its Dare Forward 2030 plan.

Automakers like General Motors (GM) and Ford Motor Company have admitted that the push towards EVs was a wrong choice given the current North American market. 

While European markets might be more receptive to an all-electric future, North American consumers still show considerable interest in hybrids and traditional ICE vehicles. This divergence requires a nuanced approach, something Stellantis acknowledges but hasn’t fully embraced in their public messaging.

Market Realities and Strategic Adjustments –

The broader automotive market is also experiencing a slowdown in the transition to EVs. Automotive brands like Cadillac and Lincoln have scaled back their EV plans to better align with customer demands. In this context, Stellantis’ ability to offer a mix of EVs, hybrids, and ICE vehicles positions them well to adapt to these shifting market dynamics.

However, Stellantis’ management’s reluctance to openly discuss its ongoing production of non-EV models has led to confusion. Rather than focusing solely on a zero-emissions future, Stellantis could benefit from a more balanced narrative highlighting its comprehensive approach to propulsion systems.

Stellantis’ management appears hesitant to fully embrace and communicate their ongoing commitment to ICE and hybrid vehicles, even as they push forward with electric models. By not articulating this dual strategy, they risk alienating a portion of their customer base. Stellantis’ ability to adapt and respond to consumer demands across different regions will be crucial to its success as the automotive market continues to evolve. A more transparent approach could help bridge the gap between their electric ambitions and the practical realities of current market preferences.