Stellantis CEO lays out company vision at Investor Day

New products for the Jeep brand, a shift toward more production in “best-cost” countries and a commitment of more than $8 billion (7.7 billion euros) in dividends and stock buybacks in 2024 were a few of the plans that Stellantis’ leaders laid out Thursday during the company’s Investor Day.

But CEO Carlos Tavares also pressed his concerns about government mandates related to electrification and the impact of tariffs, which have become more of an issue recently in light of new tariff announcements in Europe and the United States on Chinese EVs. Stellantis is currently partnering with Leapmotor to sell Chinese-made EVs globally, but the joint venture, in which Stellantis has the majority stake, also has the ability to produce Leapmotor vehicles in Stellantis factories elsewhere.

Tavares also made a plea to politicians:

“We are here to serve you with clean, safe and affordable mobility. This is our mission. The only thing I’m asking the political leaders all over the world, I'm asking to give me stability,” he said during a round of questions. "If you give me stability on the regulations I will bring you the solutions that you think are needed for your society."

'The more we see change, the more we see opportunities'

In what was a generally upbeat presentation that began about 8 a.m. and stretched into the afternoon, Tavares and company leaders highlighted for investors and others how they believe the company, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, among others, is primed for future challenges.

“The more we see change, the more we see opportunities,” Tavares said, referring, at times, as he often does, to the company’s leadership and workforce as racers who love competing.

Tavares laid out various “disruptions” to the business, such as a wide variety of customer expectations, electrification mandates, global fragmentation and a much bigger offensive by Chinese brands than just a few years ago.

Customers, he noted, are demanding affordability, which is a key issue for EV adoption.

“Zero emission mobility that is not affordable will not make it,” Tavares said, noting at one point that “without cost competitiveness, you will not be able to meet the Chinese offensive.”

The company is beginning to roll out its so-called multienergy platforms, which can be used to produce gas-powered, electric and hybrid vehicles.

Tavares noted that the company was initially criticized when that strategy was announced when much of the industry talk was focused on rolling out full EVs. Several competitors have adjusted their plans, either dialing back EV production or recommitting to hybrids.

“Now you see why it made sense to go on a multienergy platform strategy,” Tavares said.

More:Stellantis' Tavares to highlight how company will compete in 'challenging market'

On finances, the company reaffirmed its expectation of a double-digit adjusted operating income margin and positive industrial free cash flows, and Chief Financial Officer Natalie Knight told the audience gathered in an auditorium at the company’s CTC complex in Auburn Hills and those watching over the livestream to “just expect buybacks to be part of the future.”

New Jeeps on the way

As for Jeep, the SUV brand’s significance was highlighted prominently as brand CEO Antonio Filosa was one of just a few brand leaders, along with those at Ram and Peugeot, to get speaking time.

Jeep will introduce a new midsize utility vehicle as well as a new Renegade in North America, including an under $25,000 electric version of the small SUV, by 2027, according to the presentation. Sales of the 2024 Renegade, it should be noted, had been discontinued in the United States, although not elsewhere globally, with the company saying previously that it intended to focus on segments that continue to grow. A new Compass is also planned.

The brand is looking to boost sales and manufacturing in North America and elsewhere but also shift toward more production in “best-cost” countries.

References were also made to the need for a turnaround at two Stellantis plants in the United States, but Tavares declined to specify which facilities, and it was unclear precisely what the issues are.

The Investor Day events followed a series of software-related presentations on Wednesday at the company’s Chelsea Proving Grounds. The presentations highlighted technology platforms, including the AutoDrive system designed to provide updated advanced driver assistance features, e-ROUTES to help with route planning specifically with EVs and charging needs in mind and a ChatGPT virtual assistant expected to be available in 20 European countries by the end of the year, according to the company.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.