Stellantis Invests $6B in Ethanol-Based Gasoline Engines for Increased Efficiency

Leveraging Investments for 40+ Car Launch

Much has been said about the demise of the internal combustion engine, but it seems this prediction may have been overblown. Despite all the talk, some of the leading players in the automotive industry are still heavily investing in new ICE technology. One such powerhouse is Stellantis, who recently made it clear that they have no plans of giving up on traditional gas-powered cars anytime soon. The conglomerate, which boasts ownership of 14 major brands, is allocating a whopping $6 billion towards the development of new engines and vehicles in South America.

Promoted as the biggest financial commitment ever made in the automotive industry of South America, this funding will facilitate the introduction of more than 40 vehicles and the advancement of flex-fuel motor technology. In case you are not familiar with the phrase, it pertains to an internal combustion engine specially designed to operate on both gasoline and ethanol.

Stellantis has announced their plans to introduce vehicles equipped with hybrid-flex and plug-in hybrid-flex technology in order to achieve higher efficiency. By integrating the versatile combustion engine with a battery, these vehicles will offer improved performance. Furthermore, at least one fully electric car will also be manufactured in the region. These investments are scheduled to take place between 2025 and 2030.

Stellantis is currently working on the development of electrified flex-fuel engines that will be suitable for a variety of models within their vast portfolio. Furthermore, these engines will be able to seamlessly integrate into already existing production lines in South America, resulting in reduced costs. The release of new flex-fuel hybrid vehicles is planned for late 2024, and certain models will also be equipped with a dual-clutch automatic transmission.

Stellantis has a significant presence in the thriving automotive market of the region, with an impressive 31.4 percent market share in Brazil and 23.5 percent across South America as a whole. The company stands out as the top seller in Argentina and Chile, cementing its dominant position. In the previous year, Stellantis achieved strong sales numbers of over 878,000 vehicles in this area. Furthermore, it leads the commercial vehicle sector with a notable 28.6 percent share.

The primary factor for Stellantis’ success in 2023 was the widespread popularity of Fiat, which has maintained its position as the top-selling brand for three consecutive years. This achievement can be attributed to its outstanding performance in South America. Despite facing significant decline in its home base of Europe and limited presence in North America, the Italian car manufacturer has flourished in numerous Latin American nations.However, Fiat’s impressive sales figures do not come as a surprise considering the company’s strong foothold in the market. Its wide range of vehicles caters to the diverse needs and preferences of consumers in South America, making it a highly sought-after brand. Moreover, the automaker has continuously introduced new models and innovative features, further enhancing its appeal to customers.Compared to its dwindling presence in other regions, Fiat has managed to establish a dominant position in the Latin American automotive industry. The brand’s success can be primarily attributed to its well-planned strategies and effective marketing campaigns targeted towards this market. By implementing region-specific tactics and understanding the local consumer behavior, the company has been able to build a loyal customer base in South America.In light of these factors, it is evident that Fiat has emerged as a major player in the Latin American automobile market, propelling Stellantis

Toyota has recently announced its unwavering dedication to traditional combustion engines by divulging plans for the development of a fresh range of ICE models. Although emissions standards in South America are not as strict as those enforced in Europe, there is a possibility that the EU’s proposed prohibition on new vehicles emitting harmful gases may face delays and be postponed beyond its projected start date of 2035. Porsche’s Chief Financial Officer Lutz Meschke conveyed this sentiment earlier this year during an interview with Automotive News Europe.

Source: Stellantis