Stellantis To Boost In-House Production Of Vehicle Components

Stellantis has announced plans to increase the in-house production of vehicle components. In a recent conference call from Italy, Stellantis CEO Carlos Tavares emphasized that producing parts internally could reduce costs and accelerate production processes, especially in research and development during the electrification era.

“When suppliers are not racing at the same speed of our teams, our teams see a big benefit to in-source,” Tavares stated. “You come to the conclusion that what you have outsourced, you can do it in-house.”

Currently, the automaker relies on major component suppliers such as Valeo, Continental, Magna International, Forvia, and Aptiv. However, Stellantis has found that these suppliers cannot always match Stellantis’ pace of innovation or production. “We found that our suppliers were not running at the same speed as we did. Only in-house production can truly achieve our goals,” Tavares said.

By producing more components in-house, Stellantis aims to better control the supply chain and meet its targets. The company plans to have 75 new electric vehicles (EVs) across its brands by 2030 and sell 5 million EVs annually. In addition to EVs, Stellantis will continue offering hybrid and internal combustion engine (ICE) vehicles in various markets.

The automaker is currently negotiating with suppliers to determine the future demand for EV batteries and other components. These negotiations aim to balance maintaining relationships with existing suppliers and increasing in-house production capabilities.

Stay tuned as we continue to follow Stellantis’ progression towards producing more in-house components.