Stellantis Announces $5.6 Billion Investment in Brazil
The Betim plant will become a research center for bio-hybrid engines
Car manufacturer Stellantis will invest 5.6 billion euros in Brazil. This was announced by the Netherlands-based Franco-Italian holding company itself. It presented a five-year plan (2025-2030) in a country that has a historical relationship with one of the group’s brands, namely FIAT.
It will be the largest investment in the history of the automotive industry in Brazil and South America. It aims to bring 40 new products, bio-hybrid technology development, and innovative decarbonization technologies to the automotive supply chain.
Of particular interest is the bio-hybrid-related project that should be developed in Brazil with the Brazilian Betim plant as a base center. These are hybrid engines that run on electricity and use biofuels. Also worth noting is the fact that in Argentina, Stellantis acquired a 19.9% stake in Argentina Litio y Energía S.A.
With this investment, Stellantis aims to secure itself in South America, a region where it is already the market leader in Brazil, Argentina, and Chile. Specifically, 878,000 vehicles were sold last year in this part of the continent, where it has a 23.5% market share, and 31.4% in Brazil. FIAT is the best-selling brand in Brazil and South America.
“This announcement reaffirms our confidence and commitment to the future of the South American automotive industry and is a response to the favorable business environment in this region,” said Stellantis CEO Carlos Tavares. “As a key element of our ‘third engine’ growth strategy, South America will take the lead in accelerating the decarbonization of mobility together with our people, our supply chain, and our partners.”
The project in Brazil is one of the strategic investments in the Dare Forward 2030 plan. It involves a €50 billion investment in electrification over the next 10 years and aims to make Stellantis a “zero-emissions” company by 2038.