Stellantis Will Invest Billions to Manufacture New Models in Brazil, Argentina

The parent company behind brands such as Fiat and Jeep is preparing to produce 100% electric vehicles in South America, while also pioneering new technologies for the region

Stellantis Will Invest Billions to Manufacture New Models in Brazil, Argentina
April 25, 2024 | 01:44 PM

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Sao Paulo — Stellantis (STLA), the company behind Fiat and Jeep, is planning to produce new models and develop novel technologies in its South American plants, as it looks to launch hybrid and fully electric cars across the continent. At its Brazilian factory in Goiana, Pernambuco, it expects to invest around R$13 billion (US$2.519 billion) between 2025 and 2030, while allocating US$387.49 million to its Argentine production hub over the same period.

The group’s plan also includes launching the first SUV to be produced in Argentina under the Peugeot brand.

“We’re clearly the leaders in Brazil and Argentina, but we know there’s even more potential,” said Stellantis’ President for South America, Emanuele Cappellano, to a group of journalists. At the Pernambuco plant, the amount includes expanding its local supplier network. Currently, there are around 38 suppliers producing at that automotive hub.

“We’re trying to build a broader network, which is key to increasing the competitiveness of our automotive hub. Reaching one hundred [suppliers] will be gradual; we’re putting together a package of incentives and conditions for this to happen,” he added.


The investment in Goiana will be allocated to new products and platforms, Cappellano explained.

“We don’t have the goal of increasing production capacity in Pernambuco, but we’re investing in new technologies,” he stated. Currently, the plant’s output potential stands at 280,000 units per year, but according to Stellantis, it is not running at full capacity.

The executive didn’t provide details on investments in the Betim plant, in Minas Gerais, but emphasized that resources in Brazil will be directed towards the production and development of components and solutions for hybrid and electric propulsion. He also confirmed that there will be local production of purely electric models.


“We are considering launching electric vehicles, but there’s the question of how much this type of vehicle can be absorbed by the market. It’s a complex issue, there is a lack of charging infrastructure. We will introduce purely electric vehicles, but we will adjust the mix according to market demand,” stated Cappellano.

When asked about competition in the electric vehicle segment in Brazil, especially with the aggressive entry of Chinese brands, the executive said that the group is prepared. “New competitors are coming from abroad, with competitive prices, but a sustainable offer is needed. To face this cycle, we also need financial sustainability; we are looking for other complementary business opportunities.”

How much will Stellantis invest in Argentina?

Stellantis recently announced an investment of R$2 billion (US$387.49 million) for the period 2025-2030 in Argentina. “We have a comprehensive plan to grow all our brands in the country,” said Cappellano.

In South America’s second-largest auto market, the group has decided to produce the New Peugeot 2008, the first SUV manufactured by Stellantis in the neighboring country.


According to the company, US$270 million will be allocated to the production of the new model at the El Palomar factory, in the metropolitan region of Buenos Aires. This amount adds to the US$320 million already invested in the unit, both included in the group’s previous investment cycle in Argentina.

According to the manufacturer, the production of the SUV in the country “reinforces Stellantis’ commitment to South America, where the company maintains leadership and is increasingly prepared to design, develop, and produce the most modern cars in the region.”

Stellantis recently also recently announced a US$100 million investment in 360Energy, a local renewable energy company with solar generation in parks located in the Argentine provinces of San Juan, Catamarca, and La Rioja. With this investment, the manufacturer acquired a 49.5% stake in 360Energy, in an acquisition that should help Stellantis achieve its global carbon neutrality goal by 2038.