By Nora Eckert
DETROIT (Reuters) – Stellantis said on Tuesday it will deploy a new vehicle system that will support the assembly of gasoline, hybrid and electric models, but in a sign of how turbulent the transition to electric vehicles is, the automaker has also cut production of Ram Electric postponed. pickup trucks.
The French-Italian company has revealed details about its STLA Frame platform, which will support full-size trucks and SUVs. Platforms are thought of as a skateboard on which many different types of vehicles can be built, and include major electrical and mechanical components of the car.
“We are very focused on implementing our plan, despite all the difficult challenges the sector is facing,” CEO Carlos Tavares said on a call with reporters.
Tavares said the automaker is delaying production of its electric Ram pickups until the first half of 2025 from this year, citing the need to ensure quality.
“We’re just dealing with a very significant workload,” he said.
Automakers in Detroit and elsewhere have rushed to build up production capacity for electric vehicles over the past two years, but demand has grown more slowly than expected.
The decision to focus on platforms that support electric vehicles versus platforms that offer flexibility for hybrid or gasoline vehicles has divided automakers. Ford Motor (NYSE:) has focused on selling hybrid vehicles, while General Motors (NYSE:) has focused on battery-powered models after investing more upfront in building its own EV platform. GM will start offering plug-in hybrids in 2027, the company said.
Stellantis (NYSE:) primarily offers plug-in hybrids in the US for now, but plans to ramp up EV sales in the coming years, pursuing a goal of 100% battery EV sales in Europe and 50% sales of electric passenger cars and light cars. commercial truck sales in the US by 2030.
The global industry faces even greater uncertainty over electric car demand as newly-elected US President Donald Trump implements plans to unravel various incentives around electric car production and sales.
Trump’s transition team plans to end the $7,500 consumer tax credit for the purchase of electric vehicles as part of broader tax reform legislation, two sources with direct knowledge of the matter told Reuters last week.
Some Stellantis plug-in hybrids, including the Jeep Grand Cherokee, are eligible for half that credit.
The automaker is facing declining sales in North America, which has historically generated significant profits from sales of its popular Jeep and Ram vehicles. Tavares changed his management team in an effort to address high vehicle inventories and declining stock price, and he plans to retire at the end of his contract in 2026.
Stellantis shares are down about 40% this year.
The company announced in 2021 that it would design the Frame platform alongside large, medium and smaller foundations to accommodate various vehicles in its range. Ram and Jeep vehicles will be the first to use the Frame version, Stellantis said Tuesday.
Battery-electric vehicles on Frame have a range of up to 805 km and a towing capacity of 6,350 kg, the company said. It will also support hydrogen and longer-range electric vehicles.
