Stellantis unveils $70 billion turnaround plan, targets positive cash flow by 2028
AUBURN HILLS, Mich. — Stellantis said Thursday it plans to invest 60 billion euros (US$69.7 billion) under a new five-year strategic plan by CEO Antonio
AUBURN HILLS, Mich. — Stellantis said Thursday it plans to invest 60 billion euros (US$69.7 billion) under a new five-year strategic plan by CEO Antonio Filosa that also targets annual cost savings of 6 billion euros by 2028. The plan includes putting 36 billion euros toward the company's massive portfolio of automotive brands to launch more than 60 new vehicles as well as major refreshes of 50 other models, including all-electric vehicles, hybrids and traditional internal combustion engines.
The other 24 billion euros will be put toward global vehicle platforms and new technologies for the automaker and its products, according to the company. Tune in Thursday, May 21, at 10:25 a.m. ET: CNBC's Phil LeBeau interviews Stellantis CEO Antonio Filosa. Watch in real time on CNBC+ or the CNBC Pro stream. Stellantis also said it plans to achieve positive free cash flow by 2028 after losing 22.3 billion euros last year with a 22 billion euro restructuring pulling back from all-electric vehicles.
Shares of Stellantis on the New York Stock Exchange were off 4% during pre-market trading on Thursday. Under the plan, Stellantis will not eliminate any of its 14 automotive brands, but it will fold operations of its DS and Lancia European units into Citroen and Fiat, respectively, according to the company. Fiat is one of four designated "global brands" alongside Jeep, Ram Trucks and Peugot.
That division also includes the Pro One commercial operations. Its regional brands will include Chrysler, Dodge, Citroen, Opel and Alfa Romeo. It also owns luxury brand Maserati.
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