(Bloomberg) — Stellantis NV set a goal to maintain double-digit returns through the end of the decade as the automaker speeds up the electrification of its sprawling model lineup across brands like Jeep, Ram and Fiat.
At the same time, net revenues are set to double to 300 billion euros ($334 billion), Stellantis said Tuesday. The carmaker last week reported an adjusted operating income margin for 2021 that soared to 11.8% after getting past supply snarls and labor shortages with production of more profitable vehicles.
The plan comes a little over a year after the mega-merger between Fiat Chrysler and PSA Group to form a manufacturer with 14 brands with a goal to add scale in the EV and autonomous driving shift. Since then, Stellantis has faced head on unprecedented shortages of semiconductors and remaining challenges from the pandemic.
Stellantis Chief Executive Officer Carlos Tavares has mapped out a push to plow 30 billion euros into electric cars and software, including a 7-billion-euro venture to make batteries with Mercedes Benz AG and TotalEnergies SE in France. With the EV plan well underway, Tavares is honing in on addressing Stellantis’s weak performance in China.
After early successes to deliver on a pledge for synergies of 5 billion euros as part of the merger, Tavares said the manufacturer will achieve its goal in 2024, more than one year ahead of schedule.
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