Stellantis is slowly beginning to detail the destination of the R$30 billion investment in Brazil recently announced for the period 2025-2030. Almost half of this contribution, around R$ 13 billion, will be used at the Jeep factory in Goiana (PE), which produces the Jeep Renegade, Compass, Commander, as well as the Ram Rampage and Fiat Toro pickup trucks. The main objective is “the launch of new products and the development and localization of new technologies to accelerate the decarbonization of mobility“, says the statement.
This translates into several previously announced flex hybrid cars, platforms and engines. The group, which owns the brands Fiat, Jeep, Citroën, Peugeot, Ram and Abarth, works on three technologies of this type, called Bio-Hybrid: 12V mild hybrids, in products with a 1.0 turbo engine, and full hybrids and plug-in hybrids, in cars equipped with the 1.3 turbo.
- Investments by car brands in Brazil total R$76 billion in 2024
According to the statement, the amount will be used to expand the supply chain. Emanuelle Cappellano, president of Stellantis South America, revealed that there are currently 38 local suppliers, but the objective is to reach 100 (but with no defined deadline). According to the executive, the manufacturing unit in the Northeast has a car nationalization rate just below 80%. This entire situation aims to improve competitiveness, mainly to face Chinese brands that have gained considerable space in Brazil. The total capacity of the industrial hub will remain at 280 thousand units/year.
Stellantis also confirmed that it will produce an electric car in Pernambuco. Cappellano, however, is still cautious and says that it is “the market that will tell” whether there is room for the bold maneuver and that Making an electric car costs R$50,000 more than a combustion model.
And the other R$17 billion?
Called by Stellantis the “largest investment plan in the history of the automotive industry in Brazil and South America”, the remainder of the investment (i.e. R$ 17 billion) will be distributed among all the group’s factories in Brazil: in Betim ( MG) and Porto Real (RJ). The details of the amount should be revealed throughout 2024. For Argentina, there is an investment of R$2 billion which will be destined for the General Pacheco units (where the Fiat Cronos comes from) and El Palomar (which produces the Peugeot 208 and in the future the 2008 SUV).
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It is worth remembering that the launches this year are still the result of a previously made R$16 billion investment round, which ends on December 31st. Stellantis promised ten new cars in Brazil (and the region) in 2024, three of which (Fiat Titano and new Jeep Compass and Commander) have already arrived in stores.
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Tags: Stellantis R13 billion produce hybrids Pernambuco Automotive industry
