Stellantis announced a $6 (RS30) billion investment in Brazil for 40 new models by 2030, including its first hybrid cars.
Details for Betim, Porto Real, and Goiana are pending, highlighting Brazil’s focus and an extra $400 million (R$2 billion) for Argentina.
After a $3.24 (R$16.2) billion phase, Stellantis will launch four new platforms for hybrid and future electric vehicles starting next year. Stellantis expects its first bio-hybrid model this year.
Amsterdam-based Stellantis is a global automaker formed by the merger of Fiat Chrysler Automobiles and the PSA Group, encompassing 14 vehicle brands, including Jeep, Peugeot, and Fiat.
This investment complements the federal Mover program’s $3.86 (R$19.3) billion support for eco-friendly and safe vehicles and takes advantage of extended regional production incentives, which benefit Stellantis’ Pernambuco plant.
CEO Carlos Tavares highlighted the plan in discussions with President Luiz Inácio Lula da Silva, commending the Mover program and emphasizing Latin America’s stability and Brazil’s economic efforts as critical for new investments.
This investment significantly contributes to the sector’s total of over $19 billion, showcasing Stellantis’ dedication to innovation and sustainability.
The focus remains on efficient fund utilization rather than investment competition.
Background
Stellantis’ commitment comes only 3 days after Vice President Geraldo Alckmin announced Toyota’s $2 billion investment in Brazil on Sunday, March 3, 2024.
This initiative aims to create 2,000 new jobs. Alckmin, also the Development, Industry, Commerce, and Services Minister, will join an event in Sorocaba, São Paulo.
In February, Volkswagen announced a significant increase in its Brazilian investments, planning to add R$9 billion ($1.82 billion) by 2028.
This move will push the company’s total investment to R$16 billion ($3.23 billion) in five years.
Starting in 2022, the initial phase involved R$7 billion ($1.41 billion).
This development follows announcements from BYD and General Motors, who have committed R$10 billion ($2.02 billion) to Brazil.