Stellantis Unveils €5.6 Billion Investment for South America

In a groundbreaking move, Stellantis has announced a colossal investment plan totaling €5.6 billion (R$30 billion) earmarked for the South American region from 2025 to 2030. This historic investment marks the largest ever seen in the Brazilian and South American automotive sector. The venture is set to catalyze the launch of over 40 new products, revolutionize Bio-Hybrid technologies, drive innovative decarbonization methods throughout the automotive supply chain, and unlock strategic business opportunities.

“This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here,” said Stellantis CEO Carlos Tavares. “As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network, and our partners. I want to thank each team member involved in helping create and execute our investment strategy so that, together, we can achieve our industry-leading carbon neutrality ambition.”

At the heart of this investment lies a commitment to accelerate the decarbonization of mobility. Stellantis is set to invest over €50 billion in electrification over the next decade, with a firm target to achieve carbon neutrality by 2038. South America stands as a cornerstone in Stellantis’ global strategy, serving as a thriving hub that contributes significantly to revenue targets beyond North America and Europe.

Key to this investment is the development of Bio-Hybrid technologies, which blend electrification with hybrid engines powered by biofuels like ethanol. These cutting-edge technologies will be integrated into various Stellantis vehicle models and are poised to strengthen Brazilian engineering and the domestic automotive industry. The production of the first vehicles equipped with Bio-Hybrid technology is flexible and can adapt to different manufacturing lines, fostering versatility and innovation within the sector.

Stellantis’ dominance in South America is underscored by its leadership in key markets such as Brazil, Argentina, and Chile. Last year alone, Stellantis recorded total sales exceeding 878,000 vehicles in the region, securing a notable 23.5% market share. The company’s market leadership in Brazil, with a 31.4% market share, highlights its robust position in the region’s automotive landscape.

Moreover, strategic acquisitions such as Argentina Litio y Energía S.A. and companies Norauto and DPaschoal position Stellantis as a formidable player in South America’s burgeoning electric vehicle and aftermarket segments.