Yahoo Finance Stellantis (STLA) Invests EUR 130M in Eisenach Assembly Plant
To kick off the production of new battery electric vehicle (BEV), Stellantis STLA will invest EUR 130M in its Eisenach Assembly Plant. Currently, the plant produces Stellantis’ Opel Grandland plug-in electric hybrid compact SUV. With the investment in additional capacity, the auto manufacturer will start production of Opel’s BEV successor on its all-new STLA Medium Platform. Production is expected to begin in the second half of 2024.
Expansion of the existing capacity of Eisenach Assembly Plant, located in Thuringia, Central Germany, supports Opel’s commitment to turn its entire product lineup in Europe fully electric by 2028.
Moreover, as part of its Dare Forward 2030 strategy, Stellantis aims to achieve a significant electric vehicle sales mix in Europe, the United States and Brazil by the end of the decade. All these investments will help the automotive manufacturer slash its carbon footprint by half by 2030 compared to 2021 and achieve carbon neutrality by 2038. The core objective of Dare Forward 2030 is to achieve 100% of total passenger car sales in Europe and 50% of light-duty truck and passenger car sales in the United States as battery electric vehicles by the end of the decade. If Stellantis succeeds in achieving the given target, it has a higher possibility of doubling its revenues by 2030 compared to the start of the decade, maintaining double-digit adjusted operating margins throughout the decade and becoming number one in providing exceptional products and services in every market by 2030.
By 2025, Stellantis plans to invest a total of EUR 30 billion in electrification technology to provide best-in-class BEVs to its customers.
In another strategic move, Stellantis and Credit Agricole Consumer Finance signed a contract to acquire ALD, Portugal and LeasePlan, Luxembourg. The agreement follows the partnership announcement between Stellantis and Credit Agricole Consumer Finance in December 2021. Both companies came together to create NewCo and hold equal stakes in it. NewCo, a leader in long-term vehicle leasing in Europe, is the consolidation of Leasys and Free2move Lease.
“The acquisition of the entities in Portugal and Luxembourg is an excellent opportunity to strengthen the NewCo right from the start and an extra lever to increase its fleet to one million vehicles by 2026 as part of our aggressive Dare Forward 2030 strategy,” said Philippe de Rovira, CAO, Stellantis.
Stellantis and Credit Agricole Consumer Finance also signed an agreement related to the sale of ALD’s activities in Norway, Ireland and Portugal and LeasePlan’s activities in Finland, the Czech Republic and Luxembourg.
The transaction is expected to be completed by this year, after the completion of creation of NewCo and will lay a strong foundation for both companies’ vision of becoming the leader in automotive financing in Europe.
Zacks Rank & Key Picks
STLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space include Wabash National WNC and Modine Manufacturing MOD, both sporting a Zacks Rank #1.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
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