Stellantis' New Vehicle System Delay

By Nora Eckert

DETROIT (Reuters) – Stellantis announced on Tuesday plans to deploy a new vehicle system to support the assembly of gasoline, hybrid, and electric models, while also delaying the production of Ram electric pickup trucks.

The Franco-Italian company revealed the STLA Frame platform, designed for full-size trucks and SUVs. Platforms act like skateboards to build various vehicle types and include essential electrical and mechanical components.

CEO Carlos Tavares emphasized the company's focus on executing its plan amid industry challenges during a call with reporters.

Tavares disclosed the delay of Ram electric pickups, pushing production to the first half of 2025 due to quality assurance needs, citing a significant workload.

Automakers, including Stellantis, hurried to establish EV-manufacturing capacity, only to see demand rise slower than expected.

The strategic decision regarding platforms—whether to focus solely on EVs or include hybrids and gasoline vehicles—remains divisive. Ford is increasingly promoting hybrid vehicles, while General Motors is primarily investing in battery-powered models and will introduce plug-in hybrids in 2027.

Stellantis currently offers mainly plug-in hybrids in the U.S. but aims to boost its EV sales, targeting 100% battery electric car sales in Europe and 50% in the U.S. by 2030.

The global EV industry is facing additional uncertainty if U.S. President-elect Donald Trump follows through on plans to cut incentives for EV production and sales. His transition team may eliminate the $7,500 tax credit for EV purchases as part of tax-reform legislation, impacting Stellantis’ plug-in hybrids, which currently qualify for partial credits.

Stellantis is struggling with declining sales in North America, which historically generated substantial profits from popular Jeep and Ram vehicles. Tavares has reshuffled his management team to tackle high vehicle inventory and declining stock prices, with intentions to retire at the end of his contract in 2026.

The company’s shares have decreased around 40% this year.

Stellantis previously announced plans in 2021 to develop the Frame platform alongside large, medium, and smaller foundations to fit various vehicles. The Ram and Jeep models will first utilize the Frame, which will offer battery electric vehicles a range of up to 500 miles (805 km) and a towing capacity of 14,000 pounds (6,350 kg). It will also support hydrogen and extended-range electric vehicles.