Stellantis unveils $70 billion turnaround plan, targets positive cash flow by 2028

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, with 60% of the investment expected for North America. The company expects to introduce more than 60 new vehicles and conduct major refreshes of 50 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.

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.

The company is targeting revenue growth across its major global operations through 2030. Most notably, it’s aiming for North American revenue growth of 25%, with adjusted operating income, or AOI, of between 8% and 10% in that period. It’s also targeting 15% revenue growth and AOI of between 3% and 5% for enlarged Europe. It expects double-digit revenue increases in South America, the Middle East and Africa, with an AOI of between 4% and 6% in Asia Pacific.

Shares of Stellantis on the New York Stock Exchange were off roughly 5% 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.