Stellantis (STLA) has outlined a new $70 billion U.S. plan to turnaround the automaker and boost its sales and stock price.
The company says it plans to invest 60 billion euros ($69.7 billion U.S.) over five years and achieve annual cost savings of six billion euros by 2028.
The plan includes putting 36 billion euros towards automotive brands that include Chrysler and Fiat; launching more than 60 new vehicles; and developing all-electric and hybrid vehicles.
The other 24 billion euros will be put toward global vehicle platforms and new technologies for the automaker.
Stellantis also said it plans to achieve positive free cash flow by 2028 after losing 22.3 billion euros last year.
To reduce costs, the company plans to launch a new “STLA One” vehicle platform in 2027. The new platform is designed to bring together five different platforms into one scalable architecture.
Stellantis says that by 2030, 50% of its vehicles will be produced on three global platforms, with up to 70% component reuse.
The turnaround strategy comes after Stellantis recently announced new partnerships with Jaguar Land Rover in the U.S. and Chinese automakers Leapmotor and Dongfeng Group.
In recent years, Stellantis has struggled with declining sales, a loss of market share, executive changes, and a sinking stock price.
STLA stock has declined 60% in the last five years to trade at $7.53 U.S. per share.
