- Stellantis, formerly known as Fiat Chrysler, plans to double its revenue to 300 billion euros ($335 billion) by 2030, CEO Carlos Tavares announced Tuesday.
- The automaker plans to do so while sustaining a double-digit operating profit margin as it largely moves to all-electric vehicles.
- Stellantis is targeting a 25% to 30% dividend payout ratio and intends to repurchase up to 5% of outstanding common shares through 2025.
Stellantis, formerly known as Fiat Chrysler, intends to double its net revenues to 300 billion euros ($335 billion) by 2030, CEO Carlos Tavares announced Tuesday.
The automaker plans to do so while sustaining a double-digit operating profit margin as it largely moves to all-electric vehicles, Tavares said during an investor presentation outlining Stellantis’ business plans through 2030.
The plans echo those of other major automakers such as Volkswagen and General Motors to remain profitable while transitioning to all-electric vehicles. The transitions are being driven by increasingly stronger global emissions regulations and Tesla’s rise to become the world’s most valued automaker by market cap.
Stellantis – the world’s fourth-largest carmaker – plans to increase its software-based businesses and services and sell 5 million all-electric vehicles by 2030, including all passenger car sales in Europe and 50% passenger cars and light-duty trucks in the U.S.
“We are moving, and we are moving fast to be a mobility-tech company,” Tavares said during the event.
The automaker plans to generate more than 20 billion euros ($22.3 billion) in industrial free cash flow in 2030. It also is targeting 25% to 30% dividend payout ratio and intends to repurchase up to 5% of outstanding common shares through 2025.
Stellantis plans to be carbon-neutral by 2038, with a 50% reduction by 2030, the company said.
The announcements did little for the company’s stock. Stellantis shares on the New York Stock Exchange closed Tuesday at $16.82 a share, down by 8%
Stellantis was formed by the merger of Fiat Chrysler and France-based Groupe PSA in January 2021. It has 14 individual auto brands, including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Peugeot.
The automaker plans to launch at least 25 new all-electric vehicles in the U.S. by 2030, Tavares said. Among the first will be a small Jeep SUV next year and a Dodge muscle car and Ram pickup by 2024. Globally, the company expects to offer more than 75 EVs by 2030.
Stellantis is investing 30 billion euros ($34 billion) in electric vehicles and supporting technologies through 2025.
The company’s near-term electrification strategy differs from other automakers. It still plans to release plug-in hybrid electric vehicles, or PHEVs, in the coming years. PHEVs combine electric systems and batteries with internal combustion engines.
Source: Business - cnbc.com
