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Stellantis, The Manufacturer of Jeep and Dodge Vehicles, Wants to Double its Sales by 2030!
- Stellantis, originally known as Fiat Chrysler, wants to increase its revenue to $335 billion by 2030, according to CEO Carlos Tavares.
- As it transitions to fully electric cars, the carmaker expects to do that while maintaining a double-digit operating profit margin.
- The company plans to buy back up to 5 percent of outstanding common stock through 2025, with a dividend payout ratio of 25 percent to 30 percent.
Carlos Tavares, Chief Executive Officer of Stellantis, revealed Tuesday that the company, originally known as Fiat Chrysler Automobiles, plans to increase its net revenues to $335 billion (€300 billion) by 2030.
during an investor presentation detailing Stellantis’ business plans through 2030, Tavares stated that the manufacturer aims to do that while maintaining a double-digit operating profit margin as it transitions to fully electric vehicles.
Other big manufacturers, such as General Motors and Volkswagen, have made similar strategies to remain profitable during the transition to fully electric vehicles. Global emissions standards are becoming more stringent, and Tesla‘s growth to become the world’s most valuable carmaker by market cap is accelerating the change.
Stellantis wants to expand its businesses and software-based services to customers, as well as sell 5 million fully-electric vehicles by 2030, including all passenger vehicles in Europe and 50% passenger vehicles and light trucks in the United States.
During the presentation, Tavares added, “We’re moving, and we’re moving fast to become a mobility-technology firm.”
In 2030, the carmaker expects to generate an industrial free cash flow of more than $22.3 billion. It also plans to buy back up to 5% of outstanding common stock between now and 2025, with a dividend payout ratio of 25 percent to 30 percent. According to Stellantis, the firm aims to be carbon neutral by 2038, with a 50 percent reduction by 2030.
The news had little impact on the firm’s stock. Shares of Stellantis closed at $16.82 per share on the NYSE (New York Stock Exchange) on Tuesday, down by 8 percent.
Fiat Chrysler and Groupe PSA (France) merged to form Stellantis in January 2021. Dodge, Peugeot, Alfa Romeo, Jeep, Chrysler, and Fiat are among its 14 individual car brands.
According to Tavares, the carmaker aims to introduce at least 25 new fully electric vehicles in the United States by 2030. A tiny Jeep SUV will debut next year, followed by a Dodge electric muscle car and Ram truck in 2024. By 2030, the business intends to provide more than 75 electric vehicles worldwide. Through 2025, Stellantis plans to invest $34 billion (€30 billion) on electric cars and associated technologies.
In comparison to other manufacturers, the firm’s near-term electrification approach is unique. In the next years, it still intends to introduce PHEVs. Batteries and Electric systems are combined with internal combustion engines in Plug-in Hybrid Electric Vehicles.