Stellantis pins hopes on slew of EV launches

US-European OEM Stellantis says it is launching 18 new BEV models before the end of the year on its next-generation STLA platform. But a majority of them will be followed by ICE versions.

Stellantis shares dropped by 8pc on Tuesday in the wake of the firm's Q1 financial results, as management guided towards a 10-11pc operating margin for the first half of the year. CFO Natalie Knight, however, insists that stronger growth will follow in the second half on the back of new EV releases.

"We have 25 new launches coming this year — 18 of which are going to have EV versions — and we actually have 21 of those to go," Knight told analysts on the OEM's Q1 earnings call.

Among the new BEVs mentioned by Knight are two BEV models of Stellantis ICE stalwarts, the Citroen e-C3 and the Peugeot E-3008. And the company is not limiting its compact crossovers to the European audiences of its Citroen and Peugeot brands, with Knight adding that "the US market has become tougher — there is a bigger focus on smaller and less expensive vehicles".

Despite this, Night also says that "demand remains very strong" for the upcoming Ram 1500 electric pickup, which is also set for release this year. It will be followed next year by an extended ranger EV (EREV) version.

"Following closely in 2025, the Ram Charger, a Ram extender electric vehicle with all the special performance characteristics of a BEV plus a 700-mile range addressing long-distance customer needs and eliminating the challenges of low charging density areas," Knight says. "With these innovations, we are set to lead the light-duty pickup segment, offering the most advanced ICE powertrain, a top-performing BEV and the first range extender electric vehicle, ensuring strong market competitiveness and pricing power."

As a result of the wave of upcoming launches, Knight says the focus of Q1 was "selling down prior-generation products in preparation for the launches", ahead of a "significant" ramp-up of the next-generation platform in the second half of 2024.

Flexibility

Stellantis' recently launched its STLA platform which will provide the base for both EVs and ICE products, as the company seeks flexibility to continue offering ICE cars if EV demand struggles. The platform is also adaptable in size, allowing the automaker to target the B through E market segments without re-engineering.

"If I think about our e-C3 or the Peugeot E-3008, an 'e' vehicle comes first, but also in the first half, you will see the ICE versions come along," Knight told analysts on the call, although little detail was given about the timing of the ICE follow-up vehicles.

While the CFO says that another of the upcoming launches, the Jeep Wagoneer S, will be an electric-only offering, she suggests that other new EVs will see ICE versions come along "very close in timing" to their EV predecessors.

"Our goal is to really put ourselves in a position where on the one hand we can show the market that we know where things are moving and that we are committed very much to the EV market, but on the other hand, that we have the flexibility to go and grow where the consumer demand is," she says.